Strike costs GM $1.65 billion in 3Q
DETROIT, Aug 14 (Reuters) - General Motors Corp. on Friday said
strikes at two Flint, Mich., parts plants cost the world's
largest automaker $1.65 billion in the third quarter, bringing
the total lost profits from the eight-week walkouts to $2.85
billion. In its quarterly filing with the U.S. Securities and
Exchange Commission, GM estimated that it lost 318,000 units of
car and truck production in the third quarter, on top of the
227,000 units it lost in the second quarter ended June 30.
GM said the estimated profit losses did not take into
account income it may recoup from increased future production. GM
Chairman Jack Smith said last week he expected the final cost of
the strike to be about $2 billion after some of the production
was made up.
The strikes by 9,200 United Auto Workers members at the
Flint Metal Center and Delphi East parts plant began June 5 and
June 11, respectively. A lack of parts forced GM to shut down
nearly all of its 29 North American production operations and
temporarily lay off about 193,000 non-striking employees.
The walkouts ended July 28. The automaker was able to
resume full production about 10 days later.
In the third quarter, GM's North American Operations lost
$1.3 billion from the strikes. Delphi Automotive Systems, GM's
supply unit, lost $350 million, according to the 10Q SEC filing.
((Detroit newsroom, 313-870-0200)) |
