UAW Strike Expands to GM’s Full-Size SUV Plant, 5,000 Workers Walk Off

A 2021 Chevrolet Tahoe on the assembly line at GM’s Arlington Assembly plant.
A 2021 Chevrolet Tahoe on the assembly line at GM’s Arlington Assembly plant.

The United Auto Workers have expanded their ongoing strike against Detroit's "Big Three" by initiating a walkout at General Motors' plant in Arlington, Texas—one of the most profitable in the country. The UAW says GM's better-than-expected financial results for Q3 give it reason to double down and get a larger share of profits.

The UAW's weeks-long strike spread to GM's Arlington Assembly Plant on Tuesday morning, when 5,000 members took to the picket line according to Detroit Free Press. The workers produce GM's range of popular, profitable full-size SUVs, including the Chevrolet Suburban and Tahoe, GMC Yukon and Yukon XL, and Cadillac Escalade.

General Motors Arlington Assembly in 2021
General Motors Arlington Assembly in 2021. Brandon Wade for GM

The Arlington strike immediately follows the announcement of GM's Q3 financial results, which reportedly showed a cumulative $600 million impact, estimated at $200 million a week. Arlington's production stall, however, is expected to drastically increase the strike's weekly cost to GM, which withdrew its yearly profit forecast on Monday according to Reuters. While Q3 results still reportedly exceeded expectations, with revenue up 5.4 percent to $44.1 billion, Q3 net income shrank 7.3 percent to $3.06 billion, hurt in part by Cruise losing $732 million.


EV sales growth has also recently plateaued, leading to GM postponing its production ramp-up. GM has also reportedly revised its profit outlook to account for increasing warranty costs, higher labor costs when the next UAW contract is ratified, and potential economic turndown. Nevertheless, UAW president Shawn Fain suggested GM's healthy financials give the union leverage in its negotiations with GM.

"Another record quarter, another record year. As we've said for months: record profits equal record contracts," Fain said in a statement. "It's time GM workers, and the whole working class, get their fair share."

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