The two automakers, GM and Ford, have established ambitious plans to spend billions on the development of new electric vehicles, which will return capital to investors. However, the cost of UAW strikes is putting these plans at risk. 

GM will report third-quarter results in October 2024, while Ford will do so in 2026.  

General Motors Canada voted this weekend to ratify a tentative agreement with the automaker. Affiliates voted 80.5% in favor of an agreement that promises nearly 20% wage increases for the most senior workers over the three-year term.

The UAW strike has been a shake-up for the North American supply chain, which was already in a fragile state, and now supplier layoffs continue, according to a new survey by the Association of Manufacturers of Engines and Equipment. 39% of suppliers have laid off workers, but it is not clear if the layoffs are limited to the U.S. According to the survey, the figure will increase by the end of the month and could reach 70%.

Supplier layoffs are increasing; however, inventories of new vehicles are also growing. According to estimates from COX Automotive, automakers started October with 2.2 million vehicles, which represents an increase of 150,000 vehicles compared to the beginning of September, and inventory is at its highest level since early spring 2021. However, inventory is still 35% lower than where it was in 2019. An economist from COX Automotive also estimates that at this rate, inventory could feel an impact in the coming weeks.