Canadian parts suppliers Linamar Corp. says the UAW’s strike against General Motors is costing the company up to $750,000 in earnings a day.
More than 46,000 hourly workers at GM plants in the United States have been on strike since Sept. 16, and earlier this week the union rejected the automaker’s latest proposal. Thousands more workers in Canada and Mexico -- at at GM suppliers -- have also been idled.
“The resultant decline in GM orders are currently estimated to impact Linamar earnings at a rate of up to $1M CAD [per] day ($750,000 USD) of strike,” the supplier told investors in a post on its website.
Linamar didn’t say which parts it supplies to GM vehicles.
GM ceased production of GMC Sierra and Chevrolet Silverado trucks and Chevrolet Impalas at its Oshawa, Ont., plant in September. It also temporarily laid off 700 workers at its St. Catharines, Ont., propulsion plant because the V8 and V6 engines they build and export to the United States aren’t needed at the moment.
The automaker has also idled production at three plants in Silao, Mexico, temporarily laying off about 6,000 workers there because of a parts shortage caused by the strike.
Linamar on Thursday also warned that global light-vehicle production in the third quarter through year-end is expected to be down from the company’s previous June forecast.
“On the plus side, we are seeing more in the way of conquest or takeover business due to failing suppliers that will positively impact future sales, a key advantage for Linamar thanks to our rapid response capabilities and flexible equipment philosophy,” the supplier said.
The Canadian Press reported Thursday morning that shares of Linamar Corp. tumbled in early trading after the auto parts maker issued its warning. Linamar shares plunged 10 percent to close Thursday at C$36.74 on the Toronto Stock Exchange.
Linamar also warned of a downturn its non-automotive divisions, saying markets have softened since the company's second-quarter results were reported in August.
Linamar, which is based in Guelph, Ont., ranked 57th on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $4.06 billion in 2018.
