In a recent turn of events, General Motors (NYSE: NYSE:GM) has reported a year-over-year profit decline of more than 7 percent in Q3. The dip is attributed to the ongoing United Automobile Workers (U.A.W.) strike that has disrupted operations at two vehicle plants and 18 parts distribution centers. The financial impact of the strike on earnings before interest and taxes is estimated at around $200 million.
The strike's financial adversities, which are costing GM an estimated $200 million weekly, have been managed under CFO Paul Jacobson. Despite these challenges, the company has managed to increase its revenue by approximately 5 percent to $44.1 billion. Furthermore, global vehicle sales have reached 981,000 units.
In an effort to resolve the strike, GM is currently in negotiations with U.A.W. The automaker is offering a contract that includes a 23 percent wage increase over a four-year period. The outcome of these negotiations could have significant implications for GM's future operations and financial performance.
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