General Motors’ quarterly revenue increased despite the strike – Kommersant

Today the American automobile concern General Motors (GM) reported, that at the end of the third quarter, total revenue amounted to $44.1 billion, which is 5.4% more than in the third quarter of last year. Net profit reached $3.1 billion, which is 7.3% less than a year earlier. Revenue per share was $2.28, down from $2.25 a year earlier. Analysts, respondents Refinitiv had expected much worse earnings per share of $1.88.

The company managed to achieve such indicators despite started in mid-September, a large-scale strike by trade unions of auto workers. Approximately 12.7 thousand workers are on strike at a number of American factories of General Motors, Ford and Stellantis. The strike was organized by the United Auto Workers, one of the largest and oldest unions in the United States. Trade unions are demanding an increase in workers’ wages by 40%, while company management is ready to increase them by only 20%.

Previously GM stated, that the first two weeks of the strike alone cost it $200 million. Since the strike is still ongoing, losses from it will at least also be reflected in GM’s fourth-quarter performance. The strike was also the reason that GM decided not to inform investors about its profit forecasts for the full year, as well as plans for the production of electric vehicles. From mid-2022 to mid-2024, the company planned to produce about 400 thousand electric vehicles, but due to the uncertain situation caused by the strike, this plan may be adjusted.

Evgeny Khvostik