- General Motors’ stock price fell below $30 a share on Thursday for the first time in more than three years.
- The recent stock drop comes due to a UAW strike and a new report about a potentially costly airbag part that the government believes should be recalled.
- According to FactSet, GM shares last fell below $30 per share in intraday trading on October 2, 2020.
Members of the United Auto Workers strike at General Motors’ Lansing Delta Assembly Plant in Lansing, Michigan, on September 29, 2023.
Bill Pugliano | Getty Images
DETROIT (AP) — General Motors’ stock price fell below $30 on Thursday for the first time in more than three years as the United Auto Workers union continued and reports of a potentially costly airbag recall by the automaker.
Since the UAW union’s targeted strikes began on September 15, shares of the Detroit automaker have fallen more than 10%. The stock closed at $33.66 per share a day before the work stoppages began.
The latest stock drop came midday Thursday after the Wall Street Journal reported that GM has built at least 20 million vehicles with a potentially dangerous airbag part that the government says should be recalled before more people are injured or killed.
The possible recall of approximately 52 million airbag inflators from Tennessee-based auto supplier ARC Automotive has been reported previously, but the number of GM vehicles affected has not been reported.
According to the report, the National Highway Traffic Safety Administration held a public meeting on Thursday in which it concluded that the airbag parts are defective and should be recalled. Automakers, including GM, have until the end of this year to submit responses on the matter.
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GM shares since October 1, 2020
GM has recalled about a million vehicles due to the problem. The company reiterated Thursday that it “believes that the evidence and data presented by NHTSA at this time do not provide a basis for a recall” beyond those already implemented.
“Neither the affected automakers nor NHTSA have identified a systemic design or manufacturing defect in ARC front airbag inflators despite eight years of studies and investigations,” the company said in an emailed statement. “If at any time GM determines that unrecalled ARC inflators are unsafe, the company will take appropriate action in collaboration with NHTSA.”
GM said it will “continue to work with NHTSA, other manufacturers and ARC to monitor and study the long-term performance and safety of ARC airbag inflators.”
While many Wall Street analysts say a UAW strike is already priced into GM shares, the automaker’s stock recorded just five positive trading days in 14 sessions.
GM confirmed Thursday that it had made a counteroffer to the union, the sixth since negotiations began. It comes a day after the automaker said the strike cost it $200 million in lost production in the third quarter.
“We believe we have a compelling offer that will reward our team members and enable GM to continue to succeed and thrive. We remain ready and willing to negotiate in good faith around the clock to reach an agreement,” the company said in an emailed statement on Thursday.
According to FactSet, GM shares last fell below $30 per share in intraday trading on October 2, 2020.