Stellantis takes $3 billion revenue hit from autoworker strikes

Historic strikes by autoworkers in North America have cost Stellantis €3 billion ($3.2 billion) in lost revenue, the maker of Chrysler and Jeep said Tuesday.

The company said Saturday that it had reached a “tentative agreement” with the United Auto Workers union (UAW), but not before the six-week industrial action dealt a blow to production and sales. Earlier this month, General Motors (GM) said walkouts by its workers had cost the company $200 million in their first two weeks.

Stellantis (STLA) still reported better-than-expected revenue for the July-September period, up 7% on the same quarter in 2022 at €45.1 billion ($48 billion). It shipped more than 1.4 million vehicles in the quarter, up 11% on 2022.

Electric vehicle sales climbed 37% on the previous year, driven by demand for the Jeep Avenger and Citroën ë-Berlingo.

The UAW has hailed the deal that ended the prolonged walkouts at Stellantis as a major victory. The agreement, which must still be approved by the union’s members, will see wages rise by 25% over the next four and a half years. It also includes the re-opening of an Illinois assembly plant that was closed in February, originally costing 1,200 jobs.

Separately, Stellantis reached an agreement with Canadian union Unifor Monday, hours after a strike began there.

Shares in the company were up more than 2% in morning trading in Milan.

— This is a developing story and will be updated.