The United Auto Workers (UAW) went on strike at a General Motors (GM) assembly plant in Arlington, Texas, affecting the production of profitable SUVs, including Chevy Tahoe and Cadillac Escalade.
The strike at the Arlington plant marked a significant escalation in the ongoing labor dispute, with GM stating that it doubled the weekly cost of the strike to $400 million.
The UAW's targeted strike strategy has caused substantial revenue losses for GM, Ford, and Stellantis, leading to challenges for businesses throughout the supply chain, from airlines to auto parts manufacturers.
While UAW President Shawn Fain hinted at a possible settlement, negotiations remain challenging. The strike's impact on profits and future dividends, as well as concerns about supplier financial distress, add to the uncertainty surrounding the strike's resolution.