The ongoing strike in the US automotive industry has escalated with an additional 5,000 people joining, all of whom are targeting the profit engine factories.

The United Auto Workers (UAW) in the United States has been increasing pressure on the three major American automakers in recent days, with the latest battle now targeting General Motors (GM).

On Tuesday local time, around 5,000 workers at GM's assembly plant in Arlington, Texas joined the strike, which produces several of GM's most profitable models, including the Chevrolet Tahoe, GMC Yukon, and Cadillac Escalade SUVs.

With this latest strike involving 5,000 workers, the total number of workers participating in the automotive industry strike against the three major American automakers since September has reached approximately 45,000, accounting for 31% of UAW union members. As a result of the strike's ripple effects, approximately 7,000 additional workers have been laid off.

Earlier on the same day, GM announced its third-quarter performance, which exceeded Wall Street's expectations:

• Adjusted earnings per share were $2.28, compared to $2.25 in the same period last year and an estimated $1.84.
• Net sales and revenue were $44.13 billion, a 5.4% increase compared to the same period last year and an estimated $43.25 billion.
• However, due to the uncertainty caused by the strike, the company withdrew its 2023 performance guidance.

Shawn Fain, President of the United Auto Workers, stated, "Another record-breaking quarter, another record-breaking year. As we have been saying for months, record-breaking profits equal record-breaking contracts. Now is the time for GM workers and the entire working class to receive their fair share."

In a statement, GM expressed disappointment with the unnecessary and irresponsible escalation of the UAW strike. The company revealed that it had made a comprehensive offer to the union last week, increasing the total value by approximately 25%. GM's Chief Financial Officer, Paul Jacobson, stated after the financial report was released, "GM will not sign an agreement that does not allow us to remain competitive."

On October 6th, Fain stated that the UAW plans to continue the strike until GM includes the workers at the company's joint venture battery plant in the main agreement. However, Fain stated on Monday that the negotiations regarding the battery plant had "fallen through," and he refused to provide further details on the progress of the discussions. GM CEO Mary Barra stated on Tuesday that the discussion regarding including the battery plant workers in the agreement is still open, but the current focus is on the joint venture workers who need to negotiate their own agreement with the union.

Benefiting from the better-than-expected adjusted earnings per share of $2.28 in the third quarter, GM's stock rose more than 3% in pre-market trading. However, the latest strike news caused it to give up its early gains and turn into a decline during trading hours.

Just one day before the UAW launched the latest strike against GM, 6,800 workers at a Stellantis factory in Michigan went on strike, bringing the total number of workers on strike in the automotive industry to over 40,000. The factory produces Stellantis' best-selling model, the Ram 1500 pickup truck.

The wage and other benefits increase proposal put forward by Strantus is said to be the worst among the three major car manufacturers.

Recently, the UAW has launched strikes against the profit engine factories of the three major car manufacturers, confirming the "new phase" of negotiations with automakers that Fain mentioned. Fain previously stated that in order to achieve their goals, it may be necessary for more factories to join the strike and put pressure on the companies to make concessions. "We have chips, and they have money. This is the most difficult part of the strike. At the critical moment before reaching an agreement, it is the time to exert the strongest pressure."

The strike that began on September 15th is the first time that the three major traditional car manufacturers in Detroit have simultaneously become targets of the strike. Since the start of the strike, the UAW has continued to increase pressure on the automakers. Negotiations revolve around issues such as wages, pensions, and future battery plant workers. Currently, each car manufacturer is conducting separate negotiations with the UAW for their own four-and-a-half-year contracts, but they are also closely monitoring the actions of other car manufacturers.