Michigan Plant Workers Strike Impacts GM Production
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Newsfilter
- Strike Action: The United Auto Workers (UAW) announced that workers at Dauch Corp's plant in Three Rivers, Michigan, began striking on Monday, potentially impacting the production of GM's best-selling trucks, particularly the Silverado and Sierra.
- Inventory Status: According to sources, GM currently has about two weeks' worth of axle inventory on hand, which may sustain production in the short term, but prolonged strikes could severely disrupt operations.
- Market Reaction: Following the strike announcement, GM's stock fell approximately 2% in afternoon trading on Monday, while Dauch's shares dropped around 6%, indicating market concerns over potential production halts.
- Wage Dispute: The UAW is pushing for wage increases, highlighting that workers made sacrifices in 2008 to keep the plant operational, with current top wages at $22 per hour, significantly lower than the $29 per hour in 2008, underscoring the urgent need for wage restoration.
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Analyst Views on GM
Wall Street analysts forecast GM stock price to rise
19 Analyst Rating
14 Buy
4 Hold
1 Sell
Moderate Buy
Current: 83.240
Low
57.00
Averages
95.06
High
122.00
Current: 83.240
Low
57.00
Averages
95.06
High
122.00
About GM
General Motors Company designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. The Company's segments include GMNA, GMI and GM Financial. Its GM North America (GMNA) and GM International (GMI) segment develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company's GM Financial segment provides automotive financing and related services. The Company is also focused on investing in electric vehicles (EVs) and autonomous vehicles (Avs), software-enabled services and subscriptions and new business opportunities. The Company's portfolio includes OnStar, GM Energy, GM Insurance, GM Genuine Parts, and the GM Company Store. Its OnStar portfolio offers safety, connectivity and hands-free driver assistance technologies. Its GM Energy provides Home EV Charging, Public EV Charging, Vehicle-To-Home and Energy Storage services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Consumer Stock Weakness: Consumer stocks were broadly lower on Monday afternoon, reflecting market concerns about the economic outlook, particularly amid rising inflation and interest rates, which negatively impacted investor sentiment.
- Market Sentiment Decline: As uncertainty around future consumer spending increases, the poor performance of the consumer goods sector may lead to downward revisions in earnings expectations for related companies, consequently affecting stock prices.
- Industry Impact Analysis: The weakness in the consumer goods sector could have a negative effect on overall market sentiment, especially in a slowing economy, potentially prompting more investors to shift towards defensive assets to mitigate risk.
- Investor Strategy Adjustment: In light of the decline in consumer stocks, investors may reassess their portfolios and consider reallocating funds to sectors with greater growth potential to navigate the uncertainties brought about by market volatility.
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Michigan Plant Workers Strike Impacts GM Production
- Strike Action: The United Auto Workers (UAW) announced that workers at Dauch Corp's plant in Three Rivers, Michigan, began striking on Monday, potentially impacting the production of GM's best-selling trucks, particularly the Silverado and Sierra.
- Inventory Status: According to sources, GM currently has about two weeks' worth of axle inventory on hand, which may sustain production in the short term, but prolonged strikes could severely disrupt operations.
- Market Reaction: Following the strike announcement, GM's stock fell approximately 2% in afternoon trading on Monday, while Dauch's shares dropped around 6%, indicating market concerns over potential production halts.
- Wage Dispute: The UAW is pushing for wage increases, highlighting that workers made sacrifices in 2008 to keep the plant operational, with current top wages at $22 per hour, significantly lower than the $29 per hour in 2008, underscoring the urgent need for wage restoration.
See More
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- Strike Scale: Nearly 1,000 workers at Dauch Corp.'s Michigan plant have gone on strike due to failed contract negotiations, highlighting significant worker dissatisfaction regarding wages and benefits.
- Wage History: Workers' wages were slashed to $14.50 per hour during the 2008 recession from a peak of $29, with current maximum wages at $22, indicating a pressing need for wage restoration to meet living standards.
- Negotiation Stance: Dauch Corp. expressed disappointment over the strike and emphasized a desire to reach a fair agreement through negotiations; however, union leaders assert they will continue striking until the company responds appropriately, reflecting a tense negotiation atmosphere.
- Production Impact: The strike affects parts production for several GM models, and while GM claims operations are normal, the union believes the automaker's axle inventory can only sustain production for about two weeks, potentially leading to future production pressures.
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- Wage Dispute: The union highlighted that workers' wages were slashed from $29 per hour during the 2008 recession to $14.50, with current wages capped at $22, indicating a strong demand for wage recovery amid economic recovery.
- Company Response: Dauch Corp. expressed disappointment over the strike and emphasized its commitment to negotiating a fair agreement, suggesting a desire to maintain production stability despite worker protests, which could affect its relationship with the union.
- Production Impact: GM stated that production remains normal despite the strike, with approximately two weeks' worth of axle inventory available, indicating short-term resilience but potential long-term risks if the strike continues.
See More
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- Wage Issues: The UAW claims that wages have not recovered since 2008, with current maximum pay at $22 per hour after a five-year progression, indicating a significant loss in inflation-adjusted wages, which have been cut in half since pre-2008 levels.
- Market Reaction: Shares of both Dauch Corp. (DCH) and General Motors (GM) have declined ahead of Monday's market open, reflecting investor concerns over potential disruptions in the supply chain due to the strike.
- Historical Background: Dauch Corp., formerly known as American Axle, was part of GM until 1992 when it was acquired by Richard Dauch, and it continues to supply drivetrains for GM's best-selling models like the GMC Sierra and Chevy Silverado, making the strike potentially impactful on production and delivery schedules.
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- Strike Initiation: The United Auto Workers (UAW) has initiated an unfair labor practice strike at Dauch Corp.'s Michigan factory due to failed contract negotiations, with nearly 1,000 members set to walk out at midnight, highlighting worker dissatisfaction over wages and conditions.
- Wage Concerns: The union emphasized that despite Dauch Corp. generating $8.4 billion in profits over the last decade, workers' wages are capped at $22 per hour, and inflation has halved their real wages since pre-2008 levels, indicating a significant loss of economic ground.
- Employee Support: In early May, employees voted 98% in favor of authorizing a strike if necessary, demonstrating their strong demand for improved wages and working conditions, which escalates tensions with the company.
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See More
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- Market Sentiment Decline: As uncertainty around future consumer spending increases, the poor performance of the consumer goods sector may lead to downward revisions in earnings expectations for related companies, consequently affecting stock prices.
- Industry Impact Analysis: The weakness in the consumer goods sector could have a negative effect on overall market sentiment, especially in a slowing economy, potentially prompting more investors to shift towards defensive assets to mitigate risk.
- Investor Strategy Adjustment: In light of the decline in consumer stocks, investors may reassess their portfolios and consider reallocating funds to sectors with greater growth potential to navigate the uncertainties brought about by market volatility.
See More
Michigan Plant Workers Strike Impacts GM Production
- Strike Action: The United Auto Workers (UAW) announced that workers at Dauch Corp's plant in Three Rivers, Michigan, began striking on Monday, potentially impacting the production of GM's best-selling trucks, particularly the Silverado and Sierra.
- Inventory Status: According to sources, GM currently has about two weeks' worth of axle inventory on hand, which may sustain production in the short term, but prolonged strikes could severely disrupt operations.
- Market Reaction: Following the strike announcement, GM's stock fell approximately 2% in afternoon trading on Monday, while Dauch's shares dropped around 6%, indicating market concerns over potential production halts.
- Wage Dispute: The UAW is pushing for wage increases, highlighting that workers made sacrifices in 2008 to keep the plant operational, with current top wages at $22 per hour, significantly lower than the $29 per hour in 2008, underscoring the urgent need for wage restoration.
See More
UAW Workers Strike at Dauch Corp. in Michigan for Better Wages
- Strike Scale: Nearly 1,000 workers at Dauch Corp.'s Michigan plant have gone on strike due to failed contract negotiations, highlighting significant worker dissatisfaction regarding wages and benefits.
- Wage History: Workers' wages were slashed to $14.50 per hour during the 2008 recession from a peak of $29, with current maximum wages at $22, indicating a pressing need for wage restoration to meet living standards.
- Negotiation Stance: Dauch Corp. expressed disappointment over the strike and emphasized a desire to reach a fair agreement through negotiations; however, union leaders assert they will continue striking until the company responds appropriately, reflecting a tense negotiation atmosphere.
- Production Impact: The strike affects parts production for several GM models, and while GM claims operations are normal, the union believes the automaker's axle inventory can only sustain production for about two weeks, potentially leading to future production pressures.
See More
Nearly 1,000 Workers Strike at Michigan Supplier Plant for GM
- Strike Scale: Nearly 1,000 workers at Dauch Corp.'s Michigan plant, a key supplier for GM's pickup trucks, went on strike due to unresolved contract negotiations, potentially impacting GM's production capabilities.
- Wage Dispute: The union highlighted that workers' wages were slashed from $29 per hour during the 2008 recession to $14.50, with current wages capped at $22, indicating a strong demand for wage recovery amid economic recovery.
- Company Response: Dauch Corp. expressed disappointment over the strike and emphasized its commitment to negotiating a fair agreement, suggesting a desire to maintain production stability despite worker protests, which could affect its relationship with the union.
- Production Impact: GM stated that production remains normal despite the strike, with approximately two weeks' worth of axle inventory available, indicating short-term resilience but potential long-term risks if the strike continues.
See More
UAW Strikes at Dauch Corp., Key GM Supplier
- Strike Context: Members of the United Auto Workers (UAW) have gone on strike at Dauch Corp.'s facility in Three Rivers, Michigan, a key supplier for General Motors (GM) midsize and full-size pickup trucks, highlighting worker dissatisfaction with wage negotiations.
- Wage Issues: The UAW claims that wages have not recovered since 2008, with current maximum pay at $22 per hour after a five-year progression, indicating a significant loss in inflation-adjusted wages, which have been cut in half since pre-2008 levels.
- Market Reaction: Shares of both Dauch Corp. (DCH) and General Motors (GM) have declined ahead of Monday's market open, reflecting investor concerns over potential disruptions in the supply chain due to the strike.
- Historical Background: Dauch Corp., formerly known as American Axle, was part of GM until 1992 when it was acquired by Richard Dauch, and it continues to supply drivetrains for GM's best-selling models like the GMC Sierra and Chevy Silverado, making the strike potentially impactful on production and delivery schedules.
See More
UAW Calls for Strike at Dauch Corp. Factory in Michigan
- Strike Initiation: The United Auto Workers (UAW) has initiated an unfair labor practice strike at Dauch Corp.'s Michigan factory due to failed contract negotiations, with nearly 1,000 members set to walk out at midnight, highlighting worker dissatisfaction over wages and conditions.
- Wage Concerns: The union emphasized that despite Dauch Corp. generating $8.4 billion in profits over the last decade, workers' wages are capped at $22 per hour, and inflation has halved their real wages since pre-2008 levels, indicating a significant loss of economic ground.
- Employee Support: In early May, employees voted 98% in favor of authorizing a strike if necessary, demonstrating their strong demand for improved wages and working conditions, which escalates tensions with the company.
- Industry Impact: General Motors (GM) has stated it is closely monitoring the strike situation and its potential impacts, suggesting that this event could significantly disrupt the automotive supply chain and production, affecting overall market performance.
See More
