The UAW has reportedly reached a tentative deal with General Motors (GM) to end the worker strike, according to Bloomberg. The deal is believed to be similar to the one struck with Ford, which includes wage increases and cost-of-living adjustments. Autolist Editor-in-Chief David Undercoffler is “really not surprised” by the tentative goal being reached. Regarding losses throughout the strike, Undercoffler states pointedly that GM, Ford (F), and Stellantis (STLA) were "losing a lot of money”, but foresees “significant investments here for the Big Three” especially when it comes to the union's involvement in the companies' EV plans.

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More Yahoo Finance UAW-GM deal coverage:

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Video Transcript

- It's good to see you here. So breaking earlier this hour, we just got a deal, reportedly, that the UAW was able to reach with GM. What's your first take just on some of the concessions that the automakers were able to give here, in order to reach a deal with the union?

DAVID UNDERCOFFLER: Yeah, good morning, guys. Really not a surprise that they were able to pull together a deal with General Motors, you know. You've got the contours of the deal with Ford and Stellantis. So it was really pretty expected that this would happen pretty soon.

Yeah, and some big gains here for UAW members. You're looking at wage growth, like you said. You're also looking at cost of living adjustments throughout the duration of this contract. That was a big win. You're looking at pension increases contributions there.

And you're also looking at, like you said, wage tiers, getting to the highest tier quicker for new workers. And then, also, sort of reducing the dependency on temporary workers. That was a big sticking point, too, particularly with Stellantis. UAW felt like they were relying too much on temporary workers, so they sort of worked out that to get temporary workers to full-time status much quicker.

- So we had been hearing just in recent weeks, especially from GM, about the losses that these companies were seeing because of the strikes. And so, this stops the bleeding there. But what have we seen ultimately, from the expenses that are going to be coming forward that perhaps change some of the calculus around how each of the executives at these automakers now need to think about the types of vehicles that they're producing, where they're prioritizing margins, and their takes on a per vehicle unit basis? And then, additionally the total head count that they need to make that happen.

DAVID UNDERCOFFLER: Yeah, so like you said, first thing-- yeah, the automakers were losing a lot of money, I think, General Motors said last week. All told, this is about $400 million a week that they were losing, and Ford and Stellantis certainly losing many hundreds of millions as well. Moving forward, yeah, there are significant investments here for the Big Three. You're going to see primarily, it's the future of EVs, right? This is sort of the existential risk to the UAW.

As we all know, EVs are simpler to make. They take fewer people to assemble them. So as many gains as UAW is looking to get in this contract in terms of near-term kind of economic dollars on the table, they were also looking for longer term, can we make sure that our members have a seat at the table for the-- as EVs become mainstream and they become sort of the primary type of vehicle they're building.

So you're seeing things like-- a big concession with General Motors that they gave the UAW was any joint-venture battery plant would fall under the UAW contract, Ford and Stellantis' existing plants that they're already building. There's this big BlueOval City battery plant in Tennessee that Ford is building that now falls under the UAW contract.

So you're seeing pretty big wins in terms of allowing the UAW members to know that, yes, they've got concessions in the near term. But as these EVs become mainstream, that they're going to be the ones assembling them. And so, that gives you long-term wins for the UAW.