Toyota Land Cruiser. It’s larger than Jeep’s well-known Wrangler, which is currently available as a plug-in hybrid electric vehicle.

The truck is a full-size pickup — a segment currently dominated by Ford, General Motors and Stellantis’ Ram brand. But the electric pickup market where Scout will compete remains a developing market.

Automakers such as GM and Ford rushed to release all-electric pickup trucks early in this decade to compete against several EV startups, many of which never materialized, as well as Tesla. Stellantis is expected to release all-electric and EREV full-size pickups by next year.

Scout Traveler SUV concept 

But after rushing the vehicles to market, sales slowed. Much like the overall EV industry, the large vehicles went from commanding significant price premiums to being highly incentivized.

Overall, this electric “truck” market, including the SUVs, accounted for nearly 58,000 vehicles sold during the first half of this year, according to estimates from Motor Intelligence. That’s less than 1% of the roughly 7.9 million light-duty new vehicles sold during that time in the U.S., but a 35% quarterly increase from the first to the second quarter, according to the data.

Keogh believes Scout can differentiate itself in the market with its products, lower pricing and brand appeal. Additional Scout products are expected to follow in the years ahead, Keogh said.

“Can we consider some point in the future sizing down? Absolutely,” he said. “You want to throw the dart at the best place first. And I think we’ve done that between these two vehicles.”

]]> https://thenewshub.in/2024/10/25/volkswagens-scout-motors-reveals-first-evs-as-it-shifts-to-include-plug-in-hybrids/feed/ 0 https://thenewshub.in/2024/10/24/southwest-and-activist-investor-elliott-strike-deal-to-keep-ceo-bob-jordan-add-six-new-directors/ https://thenewshub.in/2024/10/24/southwest-and-activist-investor-elliott-strike-deal-to-keep-ceo-bob-jordan-add-six-new-directors/?noamp=mobile#respond Thu, 24 Oct 2024 20:24:41 +0000 https://thenewshub.in/2024/10/24/southwest-and-activist-investor-elliott-strike-deal-to-keep-ceo-bob-jordan-add-six-new-directors/

Bob Jordan, CEO of Southwest Airlines, listens to questions from media during Southwest Airlines Investor day at Southwest Airlines Headquarters on September 26, 2024 in Dallas, Texas.

Sam Hodde | The Washington Post | Getty Images

Southwest Airlines and activist hedge fund Elliott Investment Management struck a deal to avert a proxy fight in exchange for naming six directors to the airline’s board — short of board control — and an earlier retirement for Executive Chairman Gary Kelly. Southwest CEO Bob Jordan will keep his job as part of the deal.

“We are pleased to have come to an agreement with Southwest on the addition of six new directors that will enhance and revitalize its Board,” Elliott’s John Pike and Bobby Xu said in a statement Thursday.

Five of Elliott’s board nominees along with former Chevron CFO Pierre Breber will join the board, which will stand at 13 members, Southwest said.

The Southwest board will appoint a new chairman to replace Kelly, who will now step down next month instead of next year.

Elliott had called for both Kelly and Jordan’s ouster and criticized the airline’s leadership for not moving fast enough on sales- and profit-boosting strategies. The airline has made few changes to its business model in its 50 years of flying and is now planning to upend its long-standing policies like open seating and a single-class cabin for premium seats that more profitable carriers like Delta Air Lines offer.

Southwest’s shares are up less than 1% this year while the S&P 500 has risen 21%. The airline’s third-quarter profit, also announced Thursday, topped analysts’ estimates. Shares in the carrier were down roughly 6% in midday trading.

The Dallas-based carrier has been slashing unprofitable routes to cut costs. At an investor day last month, it said the new revenue initiatives and other changes put it on track to boost earnings before interest and taxes in 2027 by $4 billion. The airline also authorized a $2.5 billion buyback, the first $250 million of which was announced Thursday. 

Elliott and Southwest as recently as last week had been girding for a proxy fight. The activist called for a special meeting in December to vote on its slate of board nominees, which it had trimmed from 10 to eight.

Elliott’s campaign hinged in large part on the removal of Kelly and Jordan from their leadership positions.

With eight new directors joining as a result of the settlement and of Southwest’s earlier board refreshment, the deal is the largest board change Elliott has driven in a U.S. fight.

Southwest’s board said in September it would drop from 15 directors to 12. Thursday’s announcement notches the board back up to 13 members.

Also in September, Southwest said Kelly would step down next spring, but the airline’s board had staunchly backed Jordan. Both Kelly and Jordan have worked at Southwest for more than three decades.

“I believe Southwest’s best days lie ahead under the vision and leadership of Bob Jordan and the oversight of this reconstituted Board,” Kelly said in a release Thursday.

— CNBC’s Leslie Josephs contributed to this report.

Correction: This story has been corrected to remove an inaccurate description for Pierre Breber, who will be joining Southwest’s board. Southwest previously announced its board would drop from 15 directors to 12. An earlier version of this story misstated that announcement.

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]]> https://thenewshub.in/2024/10/24/southwest-and-activist-investor-elliott-strike-deal-to-keep-ceo-bob-jordan-add-six-new-directors/feed/ 0 https://thenewshub.in/2024/10/22/general-motors-is-set-to-report-earnings-before-the-bell-heres-what-wall-street-expects/ https://thenewshub.in/2024/10/22/general-motors-is-set-to-report-earnings-before-the-bell-heres-what-wall-street-expects/?noamp=mobile#respond Tue, 22 Oct 2024 04:01:01 +0000 https://thenewshub.in/2024/10/22/general-motors-is-set-to-report-earnings-before-the-bell-heres-what-wall-street-expects/

The General Motors headquarters inside the Renaissance Center in Detroit on April 15, 2024.

Jeff Kowalsky | Bloomberg | Getty Images

DETROIT — General Motors is set to report its third-quarter earnings before the bell Tuesday.

Here is what Wall Street is expecting, according to average estimates compiled by LSEG:

• Earnings per share: $2.43 adjusted
• Revenue: $44.59 billion

Those results would mark a 1% uptick in revenue compared with a year earlier and a 6.6% increase in adjusted earnings per share.

GM’s 2023 third quarter included $44.13 billion in revenue, net income attributable to stockholders of $3.06 billion, or $2.20 per share, and adjusted earnings before interest and taxes of $3.56 billion, or $2.28 per share.

The quarterly report comes just two weeks after a GM investor day in which the company indicated its earnings strength is expected to continue into next year.

Topics of interest for investors that were not addressed earlier this month include GM’s funding plans for its embattled Cruise autonomous vehicle unit, China restructuring and any updates regarding its near-term electric vehicle sales and plans.

This is developing news. Please check back for additional updates.

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]]> https://thenewshub.in/2024/10/22/general-motors-is-set-to-report-earnings-before-the-bell-heres-what-wall-street-expects/feed/ 0 https://thenewshub.in/2024/10/21/lucid-ceo-says-wall-street-misinterpreted-1-75-billion-capital-raise/ https://thenewshub.in/2024/10/21/lucid-ceo-says-wall-street-misinterpreted-1-75-billion-capital-raise/?noamp=mobile#respond Mon, 21 Oct 2024 20:21:18 +0000 https://thenewshub.in/2024/10/21/lucid-ceo-says-wall-street-misinterpreted-1-75-billion-capital-raise/

Lucid Motors CEO Peter Rawlinson poses at the Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) begins trading on the Nasdaq stock exchange after completing its business combination with Churchill Capital Corp IV in New York City, New York, July 26, 2021.

Andrew Kelly | Reuters

DETROIT — Investors misinterpreted a public offering on Wednesday by Lucid Group that raised roughly $1.75 billion — and led to the stock’s worst daily performance in nearly three years, CEO Peter Rawlinson told CNBC.

Rawlinson said the raise, which included a public offering of nearly 262.5 million shares of its common stock, was a timely, strategic business decision to ensure the electric vehicle company has enough capital for its ongoing operations and growth plans. It also should alleviate any potential worries that the company would need to issue a “going concern” disclosure regarding its operations, he said.

“We’d signaled that we had a cash runway to Q4 next year. As a Nasdaq company, we have to avoid a going concern. And a going concern is issued within 12 months of your financial runway,” Rawlinson said Monday from the company’s newly opened offices in suburban Detroit. “So, it should have been no surprise to anybody.”

But Wall Street analysts largely took a negative view of the move due to its timing. Several said the raise was unnecessary or came earlier than expected for the company, which had $5.16 billion of total liquidity to end the third quarter. That included more than $4 billion in cash, cash equivalents and investment balances.

The announced transactions also come two months after Lucid said Saudi Arabia’s Public Investment Fund had agreed to supply the company with $1.5 billion in cash, as the EV maker looks to add new models to its product line.

“A cap raise was slightly larger and earlier than we had expected,” Morgan Stanley analyst Adam Jonas wrote following the raise being announced Wednesday after markets closed.

Lucid’s stock

RBC Capital Markets analyst Tom Narayan shared similar thoughts: “We suspect that investors will wonder why LCID is raising more capital just after it secured the PIF capital in August, and at currently depressed share price levels. We expect Lucid shares to trade sharply lower as a result,” he wrote in an investor note Wednesday night.

Rawlinson on Monday reiterated that the company would raise capital “opportunistically.” He said the company’s current funds now secure its capital into 2026, ahead of it launching a new midsize platform later that year.

“This is exactly as expected. It is exactly to the playbook. It should have come as zero surprise to anyone,” he said. “And why did I choose this moment? Because I didn’t want to string it out to the end, because I didn’t have to.”

Shares of Lucid declined about 18% on Thursday after the announcement — marking the worst daily decline for the company since December 2021.

Rawlinson said Lucid is currently in a highly capital-intensive investment period as it expands its sole U.S. factory in Arizona; builds a second plant in Saudi Arabia; prepares to launch its second product, an SUV called Gravity; develops its next-generation powertrain; and builds out its retail and service network.

“Those five categories are the long-term investment for the future that we’re making now,” Rawlinson said. “Have we got to cut costs with every car we’re making? Absolutely.”

Wednesday’s announcement was made in conjunction with plans for Lucid’s majority stockholder and affiliate of PIF, Ayar Third Investment Co., to purchase more than 374.7 million shares of common stock from Lucid to maintain its roughly 59% ownership of the company.

Such a transaction is called pro rata, which allows an investor such as PIF to participate in future rounds of financing and retain its ownership stake. It’s something the PIF has routinely done with Lucid.

Individual investors were likely concerned by share dilution following the action, but Rawlinson said the continued support of the PIF should be viewed as a positive.

“I think it’s been misinterpreted and misreported,” Rawlinson said. “The norm is to go pro rata. If we didn’t go pro rata, it surely would be a signal that the PIF were losing faith in us.”

Lucid last week said the public offering was expected to raise about $1.67 billion, with a 30-day option for underwriter BofA Securities to purchase up to nearly 39.37 million additional shares of Lucid’s common stock as well.

Lucid has reported record deliveries in 2024 of its current model, an all-electric sedan called Air. The company expects to produce 9,000 vehicles this year. Production of its Gravity SUV is expected to start by the end of this year.

However, Lucid’s sales and financial performance have not scaled as quickly as expected following higher costs, slower-than-expected demand for EVs, and marketing and awareness problems for the company.

]]> https://thenewshub.in/2024/10/21/lucid-ceo-says-wall-street-misinterpreted-1-75-billion-capital-raise/feed/ 0 https://thenewshub.in/2024/10/21/boeing-machinists-to-vote-on-new-proposal-with-35-raises-that-could-end-strike/ https://thenewshub.in/2024/10/21/boeing-machinists-to-vote-on-new-proposal-with-35-raises-that-could-end-strike/?noamp=mobile#respond Mon, 21 Oct 2024 13:53:47 +0000 https://thenewshub.in/2024/10/21/boeing-machinists-to-vote-on-new-proposal-with-35-raises-that-could-end-strike/

People hold sings during a strike rally for the International Association of Machinists and Aerospace Workers (IAM) at the Seattle Union Hall in Seattle, Washington, on October 15, 2024.

Jason Redmond | AFP | Getty Images

Boeing and its machinists’ union have reached a new contract proposal, the union said Saturday, outlining a deal that could end a more than monthlong strike that has hobbled the manufacturers’ aircraft  production.

The ratification vote is set for Wednesday.

The new proposal includes 35% wage increases over four years, a higher signing bonus of $7,000, guaranteed minimum payouts in an annual bonus program and higher 401(k) contributions among other changes.

Acting U.S. Secretary of Labor Julie Su met with both parties earlier this week. “With the help of Acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of your consideration,” the International Association of Machinists and Aerospace Workers District 751 said in a statement Saturday.

“President Biden believes the collective bargaining process is the best way to achieve good outcomes for workers, and the ultimate decision on a contract will be for the union workers to decide,” a White House spokesperson said in a statement.

The strike began Sept. 13 after more than 30,000 machinists overwhelmingly rejected a tentative agreement that included 25% wage increases over four years. Boeing later made a sweetened offer but the union blasted it saying it was not negotiated.

“We look forward to our employees voting on the negotiated proposal,” Boeing said in a statement.

Boeing is working to stop bleeding cash as it grapples with a safety crisis stemming from a near-catastrophic door plug blowout on one of its 737 Maxes at start the year and challenges in its other programs.

The company earlier this month said it will report a deep loss and take charges of about $5 billion in its commercial and defense units. A ratified contract on Wednesday, when Boeing also reports full results, would be a victory for new CEO Kelly Ortberg, who took the top job in August, tasked with reshaping the company.

On Oct. 11, he announced job cuts of 10% of Boeing’s workforce and that the company will stop making 767s when orders are fulfilled in 2027.

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]]> https://thenewshub.in/2024/10/21/boeing-machinists-to-vote-on-new-proposal-with-35-raises-that-could-end-strike/feed/ 0 https://thenewshub.in/2024/10/18/stellantis-to-shutter-and-sell-large-testing-facility-amid-cost-cutting-efforts/ https://thenewshub.in/2024/10/18/stellantis-to-shutter-and-sell-large-testing-facility-amid-cost-cutting-efforts/?noamp=mobile#respond Fri, 18 Oct 2024 21:54:14 +0000 https://thenewshub.in/2024/10/18/stellantis-to-shutter-and-sell-large-testing-facility-amid-cost-cutting-efforts/

Carlos Tavares, chief executive officer of Stellantis NV, speaks to the media at the Stellantis auto manufacturing plant in Sochaux, France, on Thursday, Oct. 3, 2024. 

Nathan Laine | Bloomberg | Getty Images

DETROIT — Automaker Stellantis plans to shutter and sell its large vehicle proving grounds in Arizona at the end of this year, CNBC has learned.

The decision is the latest cost-cutting measure by the trans-Atlantic automaker under CEO Carlos Tavares, who has been increasingly under pressure from Wall Street, dealers and the United Auto Workers union amid the company’s lagging financial performance, layoffs and overall business decisions.

The Arizona Proving Grounds covers 4,000 acres between Phoenix and Las Vegas in Yucca, Arizona. It has been used for vehicle testing and development for the automaker since then-Chrysler purchased the property for $35 million from Ford Motor in 2007.

The closure was confirmed by three people familiar with the plans who agreed to speak on the condition of anonymity because the matters are private.

Stellantis plans to use a proving grounds in Arizona owned by Toyota Motor beginning next year, according to two people familiar with the decision. Toyota opened its operations, which are costly to maintain, for other companies to use in 2021.

Stellantis Chrysler Arizona Proving Grounds

Source: Google Earth

Stellantis confirmed the closure Friday morning, citing the company’s ongoing cost-cutting and real estate evaluations.

“Stellantis continues to look for opportunities to improve efficiency and optimize its footprint to ensure future competitiveness in today’s rapidly changing global market,” the company said in an emailed statement.

The automaker also said it is “working with the UAW to offer proving ground employees special packages or they can choose to follow their work in a transfer of operations” but that employees could be placed on an “indefinite layoff, which would entitle them to pay and benefits for two years.”

Stellantis said 41 employees currently work at the Arizona Proving Grounds, including 37 hourly workers represented by a local chapter of the UAW.

The UAW, which has been increasingly critical of Tavares and such layoffs, did not respond for comment on the planned closure.

Stellantis, like most automakers, has several proving grounds in different climates and geographies to develop and test vehicles ahead of selling them to consumers. Stellantis’ other major U.S. proving grounds facility is a 4,000-acre campus located west of Detroit in Chelsea, Michigan.

Stellantis’ complex in Arizona was one of 18 facilities the company notified the UAW it could potentially close during the union’s contract negotiations last year with Stellantis.

A majority of the other operations were parts and distribution centers that were expected to be consolidated into “mega sites,” as well as the company’s massive 500-acre campus in metro Detroit formerly used as Chrysler’s world headquarters.

The status of the other properties was not immediately clear, however, local and state politicians, including Michigan Gov. Gretchen Whitmer, have expressed concerns that Stellantis could move to shutter the former headquarters in Auburn Hills, Michigan.

Stellantis has significantly reduced the number of its U.S. employees in recent years amid Tavares’ cost-cutting measures.

Stellantis has reduced employee head count by 15.5%, or roughly 47,500 employees, between December 2019 and the end of 2023, including a 14.5% reduction in North America, according to public filings. That doesn’t include further head count reductions and layoffs this year.

The automaker had only about 11,000 U.S. salaried employees at the end of last year. That compared with 53,000 at General Motors and 28,000 at Ford.

The reductions have occurred as Stellantis has attempted to outsource many engineering efforts to lower-cost countries such as Brazil, India and Mexico, according to several people familiar with the moves.

Bloomberg News earlier this year reported that Stellantis moved to recruiting a majority of its engineering workforce in those countries, where the cost per employee amounts to roughly €50,000 ($53,000) or less per year — far less than similar positions in the U.S. and Europe.

]]> https://thenewshub.in/2024/10/18/stellantis-to-shutter-and-sell-large-testing-facility-amid-cost-cutting-efforts/feed/ 0 https://thenewshub.in/2024/10/18/embraer-ceo-says-jet-maker-studying-possibilities-for-a-new-aircraft/ https://thenewshub.in/2024/10/18/embraer-ceo-says-jet-maker-studying-possibilities-for-a-new-aircraft/?noamp=mobile#respond Fri, 18 Oct 2024 21:26:15 +0000 https://thenewshub.in/2024/10/18/embraer-ceo-says-jet-maker-studying-possibilities-for-a-new-aircraft/

Embraer CEO Francisco Gomes Neto speaks during the Embraer Media Day 2022 at the aircraft factory in Sao Jose dos Campos, Brazil, May 30, 2022. 

Carla Carniel | Reuters

Brazilian plane maker Embraer is studying the market and new technology that could warrant it building an all-new jet, CEO Francisco Gomes Neto told CNBC.

A new airplane could help the airplane manufacturer compete with much larger rivals Airbus and Boeing, which deliver hundreds of jets a year compared with Embraer’s dozens of aircraft.

But Gomes Neto noted that no decisions have been made yet.

“At this point in time, we don’t have concrete plans to go to a big narrow body,” he said, adding that the studies for new engine technologies, avionics and potential demand are “to be prepared.”

In the meantime, Gomes Neto said Embraer is focused on improving results and selling its regional planes, which won orders earlier this year from American Airlines, manufacturing its E2 jet, and “delivering what we promise” customers.

Embraer said Friday that it delivered 16 commercial jets in the third quarter, up more than 5% from a year earlier. Including its defense and business jets, the company handed over 57 jets in the period, a third more than last year.

An Embraer E195E2 aircraft

Frederic Stevens | Getty Images

The Federal Aviation Administration approved a freighter version of its E190 passenger-to-freighter converted jet earlier this month, helping clear the way for its commercial introduction.

“This is maybe the advantage we have: We have a great product [that’s] available,” Gomes Neto said.

Both Airbus and Boeing are struggling to ramp up production and deliver aircraft on time in the wake of the pandemic. Boeing has the added challenges of a safety crisis and a machinist strike.

Boeing once had plans to take control of Embraer’s commercial jet business but ended those discussions in early 2020. Last month, Embraer said Boeing would pay it $150 million over the scuttled plan.

Like its competitors, Embraer is facing supply chain strains coming out of the pandemic, and the company is taking a more in-depth look at delivery capabilities.

Engines, hydraulic valves, cabin interiors and components for them are some of the areas where it has been difficult to ramp up production from suppliers, Gomes Neto said. He added that he expects supply chain problems will likely ease in 2026.

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]]> https://thenewshub.in/2024/10/18/embraer-ceo-says-jet-maker-studying-possibilities-for-a-new-aircraft/feed/ 0 https://thenewshub.in/2024/10/18/spirit-airlines-extends-debt-refinancing-deadline-hours-before-expiration/ https://thenewshub.in/2024/10/18/spirit-airlines-extends-debt-refinancing-deadline-hours-before-expiration/?noamp=mobile#respond Fri, 18 Oct 2024 20:42:13 +0000 https://thenewshub.in/2024/10/18/spirit-airlines-extends-debt-refinancing-deadline-hours-before-expiration/

A Spirit Airlines aircraft undergoes operations in preparation for departure at the Austin-Bergstrom International Airport in Austin, Texas, on Feb. 12, 2024.

Brandon Bell | Getty Images

Spirit Airlines on Friday said it reached an agreement with its credit card processor to again extended a debt refinancing timeline to December, hours before it was set to hit its deadline.

Spirit said in a filing late Friday that earlier this week it drew down the entirety of its $300 million revolving credit facility and expects to end the year with just over $1 billion in liquidity.

“As previously disclosed, the Company remains in active and constructive discussions with holders of its senior secured notes due 2025 and convertible senior notes due 2026 with respect to their respective maturities,” Spirit said in a filing late Friday.

The deadline was previously set in September and had been extended until Oct. 21 before the Friday change. The airline’s stock closed at a new low Friday, down roughly 3%, at less than $1.50 per share.

The Miramar, Florida-based airline has furloughed workers, slashed its schedule and deferred aircraft deliveries to save cash over the past year.

Many of its planes have been grounded because of a Pratt & Whitney engine recall. It has also reported weaker-than-expected bookings and its planned acquisition by JetBlue Airways was scuttled after getting blocked by a federal judge on antitrust grounds.

Its shares have tumbled more than 90% so far this year and nearly 40% so far in October alone.

Earlier this month, The Wall Street Journal said the carrier is considering a bankruptcy filing. Spirit and advisor Perella Weinberg Partners did not immediately comment on the matter.

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]]> https://thenewshub.in/2024/10/18/spirit-airlines-extends-debt-refinancing-deadline-hours-before-expiration/feed/ 0 https://thenewshub.in/2024/10/18/spirit-aerosystems-to-furlough-700-workers-as-boeing-machinist-strike-continues/ https://thenewshub.in/2024/10/18/spirit-aerosystems-to-furlough-700-workers-as-boeing-machinist-strike-continues/?noamp=mobile#respond Fri, 18 Oct 2024 13:55:11 +0000 https://thenewshub.in/2024/10/18/spirit-aerosystems-to-furlough-700-workers-as-boeing-machinist-strike-continues/

Airplane fuselages bound for Boeing’s 737 Max production facility await shipment on rail sidings at their top supplier, Spirit AeroSystems Holdings Inc., in Wichita, Kansas, on Dec. 17, 2019.

Nick Oxford | Reuters

Boeing supplier Spirit AeroSystems will furlough some 700 workers as a strike by machinists at the plane maker enters its sixth week, a spokesman for the supplier said Friday.

More than 32,000 Boeing workers walked off the job Sept. 13 after overwhelmingly rejecting a tentative labor deal with Boeing, deepening the aircraft producer’s financial strain and handing a new challenge to CEO Kelly Ortberg, who took the reins just over two months ago.

The temporary furloughs account for about 5% of Spirit’s U.S. workforce, according to its latest annual filing.

The temporary furloughs will affect employees at Spirit’s largest facilities, in Wichita, Kansas, and account for about 5% of Spirit’s U.S. workforce, according to its latest annual filing. Meanwhile, Boeing and its machinists’ union remain at an impasse, and Spirit is considering deeper cuts.

“If the strike continues beyond November, we will have to implement layoffs and additional furloughs,” Spirit spokesman Joe Buccino told CNBC on Friday.

Read more CNBC airline news

Ortberg, who faces investors in his first earnings call next Wednesday, last week announced a series of drastic measures meant to slash costs as the company’s losses mount, including cutting the workforce by 10%, or about 17,000 people. Boeing is also ending 767 commercial production when orders are fulfilled in 2027 and said its long-delayed 777X wide-body jet won’t debut until 2026, pushing it back yet another year.

Boeing is in the process of raising debt or equity to increase liquidity.

The roughly 700 Spirit workers affected by the 21-day furlough are assigned to the 777 and 767 programs for Boeing, for which Spirit has built up “significant inventory,” Buccino said. Spirit workers on Boeing’s bestselling 737 Max are not affected, he added. Work on all three programs, however, is stalled because of the strike.

Boeing agreed to acquire Spirit this summer, but the companies don’t expect the deal to close until mid-2025. Reuters earlier reported Spirit’s latest furloughs.

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