The United Auto Workers strike against General Motors, Ford and Stellantis earlier this year will ding each of the “Big Three” automakers a hefty sum of lost profit.

The losses attributed to the labor negotiations, and resulting production halts, were reported as follows below. Each of the Big Three will still bring in billions in profit.

GM: $1.1 billion

During 2023, GM twice raised its full-year earnings guidance before withdrawing it in the third quarter due to the UAW strike which resulted in lost production.

In its full-year earnings report, released Nov. 29, GM officials said there was a estimated $1.1 billion EBIT-adjusted loss.

“We are finalizing a 2024 budget that will fully offset the incremental costs of our new labor agreements,” GM Chair and CEO Mary Barra said in a news release.

GM was the last of the Big Three to reach an agreement with UAW.

Ford: $1.7 billion 

In its full-year earnings report, release Nov. 30, Ford officials said it estimates $1.7 billion in strike-related lost profits – $1.6 billion of that from the fourth quarter. It attributed the loss to to interruptions in production of high-margin trucks and SUVs and, in turn, vehicle wholesales about 100,000 units lower than planned.

Ford generated $4.9 billion of net income and $9.4 billion in adjusted EBIT through the first three quarters of the year, prior to full effects of the work stoppage.

Stellantis: <$800 million

Stellantis CFO Paul Jacobson told media on Oct. 24 that the strike is expected to cost the company less than $800 million in pre-tax earnings.

The negative impact on shipments due to the UAW strike, combined with a strike by its Canadian workers represented by Unifor, was around 50,000 units, officials said during a 3Q 2023 Shipments and Revenues investors call.

The associated net revenue impact was close to $3.3 billion.

Stellantis will release its full-year earnings report Feb. 15, 2024.

Cost of the Labor Contract

The new U.S. labor agreement with the UAW is expected to cost Ford an additional $8.8 billion over the life of the four-year contract, with gross wages, accelerated wage progression and cost of living adjustments representing the largest three elements of that total, said Ford Chief Financial Officer John Lawler in an earnings report news release.

“The cost effect is anticipated to be about $900 per vehicle by 2028 – or about 60 to 70 basis points of adjusted EBIT margin – which Ford will work to offset through higher productivity and lower expenses,” Lawler said.