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The General Motors strike could cost the automaker $75 million per day if it continues (GM)

The General Motors strike could cost the automaker $75 million per day if it continues (GM)
LM Otero/Associated Press



49,000 General Motors workers went on strike this week, after contract negotiations between the automaker and the United Auto Workers labor union.




Analysts at JPMorgan estimate that the strike could cost GM up to $75 million every single day.




The new contract will set a precedent as the UAW begins negotiations with the other major automakers soon.




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Nearly 50,000 General Motors went on strike last Sunday, beginning the largest labor action against the automaker in more than a decade.
Tensions between the automaker and the union began in 2018, when General Motors "unallocated" four plants in the American heartland in order to save money. But now the bad blood could be costing the Detroit automotive giant $75 million every day the strike continues, according to JPMorgan analysts.
That estimate is based on an assumption that the company can produce two million light vehicles over 261 working days, at an average historical profit of $10,000 per vehicle.
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