As the United Auto Workers strike persists, General Motors has established a $6 billion revolving credit agreement.
· GM’s new credit agreement has terms including maintaining specific global and U.S. liquidity levels.
· Approximately 25,000 workers from GM, Ford Motor, and Stellantis are currently on strike.
· Both Ford and GM have initiated layoffs, with GM recently idling 163 Ohio workers due to the strike.
General Motors (GM) has secured a $6 billion revolving credit agreement amidst the ongoing turmoil caused by the United Auto Workers (UAW) strike, as first reported by Bloomberg. This financial move by the automaker comes with stipulations that ensure GM maintains a global liquidity of no less than $4 billion and a U.S. liquidity surpassing $2 billion. Additionally, the agreement sets limits on potential mergers, sales of assets, and incurring further debt.
The UAW strike has significantly impacted the auto industry. The union, failing to agree on new four-year contracts by the September 14th deadline, initiated work stoppages. This action has affected not only GM but also its contemporaries, Ford Motor and Stellantis, with a combined total of around 25,000 workers at various facilities participating in the strike. The UAW has been expanding its strike actions as a means to exert pressure during negotiations.
In reaction to the strike and its cascading effects, automakers have been compelled to take countermeasures. Ford and GM, in particular, have had to lay off workers. A recent announcement from GM revealed that they would be idling 163 workers in Ohio. The broader repercussions of the strike have seen over 6,000 factory workers across various suppliers and automakers losing their jobs.