GUELPH, Ontario—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 U.S. have been on strike since Sept. 16 as negotiations enter their fourth week without resolution in sight. Thousands more workers in Canada and Mexico—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, Ontario, plant in September. It also temporarily laid off 700 workers at its St. Catharines, Ontario, propulsion plant because the V8 and V6 engines they build and export to the U.S. aren't needed at the moment.
The auto maker 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 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.