GM furloughs more workers as union strike enters fourth week

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United Auto Workers members on strike picket outside General Motors’ Detroit-Hamtramck Assembly plant on Sept. 25, 2019 with Vermont Sen. Bernie Sanders (far left) in Detroit.

Michael Wayland | CNBC

DETROIT – The United Auto Workers’ strike against General Motors, now in its fourth week, is continuing to hit the automaker’s operations outside of the U.S.

The company halted production of a V-8 engine and transmission at its engine plant in Ramos Arizpe, Coahuila, Mexico, and told about 415 of the factory’s 2,100 employees not to come to work on Monday, a company spokesman told CNBC on Monday. The temporary layoffs add to roughly 10,000 non-UAW workers in North America that have been furloughed because of the strike.

GM last week idled a plant in Mexico that produces its highly-profitable Chevrolet Silverado and GMC Sierra 1500 pickups, temporarily laying off 6,000 workers. Prior to that, the company cut several operations in Canada and its jointly operated DMax engine facility in Ohio.

The Buckingham Research Group on Monday estimated GM has lost about 153,000 units of production after three weeks, much of which it won’t be able to make up in the fourth quarter.

GM’s stock opened Monday at $34.60, down 10% since the Friday before the strike began. Shares of the Detroit automaker are still up 4.4% for the year.

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