UAW Strikes Could Disrupt Financial Plans of GM and Ford

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The UAW strikes have cost General Motors (GM) and Ford over $5oo million combined. GM and Ford shares have fallen sharply since July as the UAW strikes has intensified. GM shares traded near a 52-week low on Friday. Still, some investors are optimistic that dividends and share buybacks can continue. “At least in the short term, I don’t think we have significant concern around the dividend being suspended or share buybacks being limited,” said Tim Piechowski, portfolio manager with ACR Alpine Capital Research, which owns GM shares. GM and Ford were uncertain about developing electric vehicles because of the strikes, but Piechowski says they should continue investing. He expressed his bigger concern was if the companies had to draw down cash in case of a full work stoppage. GM has set up a new, $6 billion credit line as insurance against an expanded UAW strike.