Stellantis has lost $3.2 billion in net income due to the auto strike

Two days after reaching a provisional agreement with the United Auto Workers (UAW) union to end the strike, Stellantis reported that the strike significantly hurt the company in its latest financial statement.

In a statement, the parent company of brands such as Chrysler, Jeep and Dodge, among others, announced that it has lost a net income of around $3.2 billion - compared to initial forecasts - up until October, as a result of the automobile strike.

However, Stellantis reported that in the third quarter of 2023, net income grew 7% more compared to the same period in 2022. In total, it made $48 billion between July 1 and September 30. Shares valued at around $530 million were also repurchased.

Tentative agreements to end the strike

The three manufacturers involved in the strike led by the UAW have reached a provisional agreement to end the strike. Before it can be finalized, these deals must be approved by both local union leaders and a simple majority of the 57,000 employees represented by the union.

The first to do so was Ford on October 26. Three days later Stellantis reached its agreement. On Monday, October 30, General Motors wrapped up negotiations with the UAW.

Both the manufacturers and the union agreed to the same conditions: at least a 30% salary increase for employees represented by the UAW - between the salary increase and the additional cost of living adjustments- throughout the four years and eight months that the contract will last.