Shulou(Shulou.com)11/24 Report--

CTOnews.com, Oct. 17 (Reuters)-General Motors and Ford have plans to spend billions of dollars developing new electric vehicles while returning money to investors, all from profits from fuel trucks and SUV.

Analysts said the rising costs of the UAW strike and the eventual contract settlement put these plans at risk.

"it is possible to reduce capital expenditure, delay targets for electric vehicles, increase cost sharing and 'portfolio' for companies," Adam Jonas, Morgan Stanley analyst, told clients in a note on October 12.

General Motors will report third-quarter results on October 24 and Ford will report third-quarter results on October 26. GM has said it will reduce its third-quarter profit by $200m due to strike-related costs (CTOnews.com Note: currently about 1.462 billion yuan).

Ryan Brinkman, an analyst at JPMorgan Chase, estimated in a report that the strike had cost GM and Ford more than $500m. Brinkman estimates that Ford is now losing $44 million a day (currently about 322 million yuan), while GM is losing $21 million a day (currently about 154 million yuan).

On Oct. 11, UAW Chairman Shawn Fain ordered a strike at Ford's Kentucky truck assembly plant, which is Ford's most profitable single plant in the world. Kentucky trucks generate $25 billion a year, or $48000 per minute (currently about 351000 yuan).

Earlier this month, Ford suspended plans to build a $3.5 billion battery plant in Marshall, Michigan. Chief Executive Jim Farley warned that Ford's future product investment could be further reduced if a "bad deal" is reached with UAW.

GM set up a $6 billion new credit line as insurance against the expansion of the UAW strike.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.