General Motors is close to reaching a tentative agreement with UAW

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on Oct 27, 2023
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  • General Motors could soon ink a Ford-like deal with the UAW.
  • Stellantis is near a tentative agreement with the union as well.
  • GM stock is now down about 35% versus its year-to-date high.

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General Motors Co (NYSE: GM) is down 2.0% on Friday even after a report that it’s close to reaching a tentative agreement with the United Auto Workers.

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GM may sign a deal similar to Ford

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Anonymous sources told CNBC today that the automaker had intense negotiations with the UAW this morning that may soon result in a preliminary deal – much like the one the union announced with Ford Motor on Wednesday.

Ford agreed to restore cost-of-living adjustments and enhanced benefits on top of a 25% pay increase to sign a tentative agreement with the United Auto Workers this week. It expects up to $900 per vehicle of additional labour costs if the deal is indeed ratified by its workers.

The report arrives only days after General Motors reported solid results for the third quarter – which made the union extend its strike to the automaker’s Arlington facility that produces its highly profitable SUVs.  

Stellantis is near a UAW deal as well

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A tentative agreement could end the strike that started on September 15th and is now costing General Motors over $200 million per week.

Talks between the legacy car manufacturer and the UAW, however, remain fluid which essentially means they are still prone to changing. Both GM and the United Auto Workers refused to divulge details off the discussions on Friday.

Shares of General Motors that also abandoned plans of building affordable EVs with Honda this week are down 35% versus their year-to-date high at writing.

CNBC also learned on Friday that its peer Stellantis is now close to a potential deal with the UAW as well.

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