Stock Drop of General Motors Today
In a recent development, the United Auto Workers (UAW) have reached a tentative agreement in their negotiations with General Motors (GM), although the details of this agreement are yet to be confirmed[2]. The UAW continues to engage in union activities, including expanding union representation, but as of yet, there is no update on a finalized contract with GM following the strike.
The potential impact of a strike on GM's electric vehicle (EV) production is significant. During the UAW's 2023 strike actions, the Wentzville Assembly plant, a key GM site, was identified as a "tip of the spear," indicating it was heavily affected and critical in workforce mobilization[4]. Production disruptions from such strikes typically slow or halt vehicle manufacturing, including EVs.
Given GM's strategic push towards EVs, any labor unrest or strike actions pose a risk to production continuity and supply chain reliability. This could delay model launches, affect delivery timelines, and result in financial impacts for GM as it competes aggressively in the EV market[4].
The models at the heart of GM's future as an electric vehicle maker are the Hummer SUV, the 2024 Chevrolet Silverado EV, and the Cruise Origin self-driving EV. If talks break down again or workers fail to ratify the agreement, production of these vehicles could be delayed[5].
The news of the potential strike comes at a time when the U.S. economy is facing challenges. The U.S. Bureau of Economic Analysis has downgraded its assessment of the economy's performance in Q1 to a contraction of 1.6%[3]. Additionally, U.S. core inflation remains high at 4.7%[6].
The stock market has been in a funk for the past week, with GM stock sinking 3.3% through 11:40 a.m. ET today[1]. Furthermore, consumer disposable income is falling, adding to the economic uncertainties[7].
As the race to replace Tesla as the leader in the EV industry continues, any hiccup in GM's production plans at this time could be detrimental[8]. The Detroit Free Press reported this news last night, and employees at four plants in Michigan that build subsystems for GM were prepared to go on strike this morning[5].
However, the details of the agreement are not yet known, and it remains to be seen whether the workers will ratify it. The UAW and GM have a history of reaching agreements, and it is hoped that this tentative agreement will lead to a resolution that benefits both parties and ensures the uninterrupted production of GM's electric vehicles.
References: [1] MarketWatch, 2025. [2] UAW, 2025. [3] U.S. Bureau of Economic Analysis, 2025. [4] GM Authority, 2023. [5] Detroit Free Press, 2025. [6] U.S. Bureau of Labor Statistics, 2025. [7] The Wall Street Journal, 2025. [8] CNBC, 2025.
- Despite the current economic challenges, such as the contraction in Q1 GDP, high core inflation, and a struggling stock market, any strike or disruption in the production of GM's electric vehicles, like the Hummer SUV, the 2024 Chevrolet Silverado EV, and the Cruise Origin self-driving EV, could significantly impact the finance sector by threatening the company's competitiveness in the aerospace and money markets.
- The UAW's potential strike at four plants in Michigan could pose a risk to GM's strategic push towards electric vehicle manufacturing, potentially resulting in delays in model launches, affect delivery timelines, and lead to financial implications for the company as it strives to outperform competitors in the financially demanding EV industry.
- As the race for leadership in the EV industry intensifies, it is crucial for both parties, the UAW and GM, to reach a finalized agreement and ensure uninterrupted production, maintaining the stability of the finance industry and securing GM's position in the competitive aerospace and money markets.
