General Motors Secures $6 Billion Credit Agreement Amidst UAW Strike

General Motors (GM) has recently finalized a new $6 billion revolving credit agreement as the automaker navigates through the consequences of the ongoing United Auto Workers (UAW) strike. This 364-day agreement imposes certain restrictions on potential mergers, sales of assets, and debt incurrence. As part of the arrangement, GM is required to maintain a minimum global liquidity of $4 billion, as well as a U.S. liquidity exceeding $2 billion.

Although the strike did not noticeably impact GM's third-quarter sales, it did result in a loss of approximately $200 million during this time period. GM is due to report its quarterly results on October 24th.

GM, along with its counterparts Ford Motor and Stellantis, is currently grappling with the ongoing UAW strike. Roughly 25,000 workers across all three companies are participating in this labor action. The union instigated these work stoppages after failing to reach an agreement on new four-year contracts before the September 14th deadline. Gradually, the UAW has expanded the strikes as a way to apply leverage.

In response, both Ford and GM have resorted to worker layoffs. Earlier this week, GM announced that it would temporarily lay off 163 workers in Ohio due to the strike. Across various suppliers and automakers, more than 6,000 factory workers are currently out of work due to the ripple effects of these strikes.