“They are all making preparations to varying degrees,” Stevens stated this week during the Center for Automotive Research Management Briefing Seminars in Traverse City, where the potential strike was a significant topic of discussion. “If you fail to anticipate that, you are operating blindly, and companies are not making that mistake.”
Although the main focus of the annual conference for industry leaders revolved around themes of vehicle electrification and autonomous technology, many attendees were privately discussing the ongoing UAW labor negotiations and the potential consequences if they were to collapse.
“Preparedness has been a key topic at the conference – some companies are taking proactive measures and have already developed roadmaps,” Stevens remarked.
The talks surrounding a potential strike have also dominated discussions among stock analysts. The possibility of a strike was raised multiple times during conference calls with major industry suppliers reporting their quarterly earnings this week, including Lear Corp., Adient plc, and BorgWarner Inc.
Lear, the global seating supplier, still feels the impact of the GM strike in 2019. The six-week work stoppage resulted in an overall cost of approximately $4 billion for the automaker, while for Lear, it meant a revenue loss of $70 million to $75 million each week. According to Lear CFO Jason Cardew during the analyst call on Tuesday, GM accounts for the company’s most vertically integrated business.
“If all three customers were to experience downtime for a week, it would amount to about $140 million of revenue,” he explained.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
