The General Motors workers’ six-week strike is finally over, but it took a hit to the bottom line of the company. The strike decimated the auto company’s free cash flow and cost the company roughly $2.9 Billion, which was actually less than anticipated. This loss comes as the result of 31 of General Motors’ factories being idle for an extended period of time. The company has estimated a loss of about $2 per share for the quarter.
General Motors has managed to minimize the damage felt by the strike as vehicle sales in the US rose 6% this past quarter. Their vast vehicle inventory was able to maintain their dealership supply throughout the strike. GM looks to quickly get their production rate back to normal in the factories that were on strike as their four-year deal with the United Auto Workers sparks new optimism within the company. Shares of GM are actually up about 4.5% today as the $2.9 billion loss was less than expected and vehicle sales were up.
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