General Motors falls to its lowest since June after reportedly making a second offer to striking workers
- General Motors stock sank as much as 2.9% Tuesday after the company reportedly made a second offer to striking workers.
- The automaker sent the proposal Monday after members of the United Auto Workers union rejected a first offer over the weekend, the Detroit Free Press reported. Details of the second offer are confidential and GM hadn't received a response from the union as of Monday night.
- Negotiations between GM and UAW took "a turn for the worse" over the weekend, union vice president Terry Dittes said in a letter to members.
- Watch GM trade live here.
General Motors stock tumbled as much as 2.9% Tuesday after reportedly making a second offer to striking members of the United Auto Workers union.The automaker sent a second offer to UAW Monday morning after the union rejected a first offer over the weekend, the Detroit Free Press reported. The details of the new proposal are confidential, and GM was still waiting for the union's response as of Monday evening, two sources familiar with the matter told DFP.Advertisement
The strike entered its fourth week Monday, and has already wiped out more than $4 billion from GM's market cap.
"These negotiations have taken a turn for the worse," UAW vice president Terry Dittes said in a Sunday letter to members. "We, in this union, could not be more disappointed with General Motors."Read more: The General Motors strike is getting more expensive. It has likely cost the automaker more than $1 billion already.
Roughly 46,000 workers began the strike on September 16. The automaker's stock has fallen roughly 9% since then and now trades at its lowest levels since early June.The union's leadership is asking for entry-level pay raises, improved health care, and a faster process for short-term workers to earn higher salaries. The requests arrive as GM looks to produce more electric and autonomous vehicles, a change that would endanger the job security of many striking workers. A continued demonstration would further hit GM's third-quarter earnings, as the company can only make up for so much lost production. The automaker is scheduled to announce its latest quarterly figures October 29, and is likely to answer many questions regarding the strike during the related analyst call.Advertisement
General Motors traded at $33.97 as of 12:50 p.m. ET Tuesday, up roughly 0.1% year-to-date. Shares have fallen 7.6% since the strike began on September 16.
The company has 16 "buy" ratings, six "hold" ratings, and no "sell" ratings from analysts, with a consensus price target of $47.78, according to Bloomberg data.Now read more markets coverage from Markets Insider and Business Insider:Advertisement
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