AutoBeta(AutoBeta.net)10/04 Report--

The general strike at GeneralMotors, the traditional US car giant, is still simmering. Recently, General Motors announced that it would suspend production at a plant in Mexico, involving more than 6000 workers. The direct cause of this situation is GM's strike in the United States.

The GM strike began last year when GM announced that it planned to close four US plants in November, but failed to agree on employee jobs, pay and benefits. The United Auto Workers (UAW) launched a nationwide strike of 49000 workers on Sept. 15. It has become the largest strike in the United States in nearly 12 years. It is reported that GM employees involved in the strike can only receive a subsidy of $250 a week from UAW. To make the situation more difficult for workers, trade union rules prohibit members from looking for other jobs during the strike, otherwise they will lose their union benefits.

GM's plant in Mexico mainly makes pick-up trucks and transmissions, and the strike led to a shortage of parts, forcing GM to close its plant in Mexico. The closure of GM's plant in Mexico means that new orders for Chevrolet Silverado, the best-selling light in the United States, will lose all supplies.

Since the strike began on September 15, about 10,000 non-union workers in North America have lost their jobs as a result of the strike, resulting in the closure of 33 manufacturing plants and 22 parts distribution warehouses in nine states. In addition, about 3200 manufacturing workers have been laid off in Canada and 525 hourly workers have been laid off at GM's co-operated DMax plant in Ohio.

Former Wall Street analysts estimate that the strike will cost GM as much as $100 million a day, and the impact of the strike is likely to affect many companies that work with GM. JPMorgan estimates that a continuing strike by GM's union workers has now cost the company more than $1 billion in the third quarter.

A GM spokesman recently told the media: "the top priority is to reach an agreement to get everyone back to work as soon as possible." In an earlier statement, GM proposed a series of new plans to invest more than $7 billion, add 5400 jobs and raise wages and benefits, but the problem is clearly not easy to solve, and negotiations between the two sides are continuing.

GM's share price has not been doing well since the strike was announced a few weeks ago. General motors shares fell sharply when u.s. stocks opened on Sept. 16, closing down 4.25% at $37.21, and generally fell more or less in the days that followed. Based on gm's closing price of $38.86 on Sept. 13, at $36.11 on Oct. 2, the stock has fallen 7.08%, or $3.927 billion in market value.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat