The General Motors strike – now entering its fourth week – is rippling across the economy, from parts suppliers to bars, restaurants and other businesses that serve employees who now find themselves tight on cash.
The layoffs have also added to fears that a weakened manufacturing sector could tip the economy into recession.
The strike is costing big automotive parts suppliers such as Axle and Lear Corporation $2 million a day each, while the toll on Lake Forest-based parts-maker Tenneco is $1 million daily. That’s according to estimates released Monday by an industry analyst at RBC Capital Markets.
In other Chicago business news:
The retail space at the iconic Marina City towers complex is going up for sale.
Crain’s reports that a broker has been hired to sell the 146,000-square-foot retail space, which currently is 98% leased to multiple tenants including the Smith & Wollensky steakhouse, Dick’s Last Resort and the 10 Pin bowling alley.
Pebblebrook Hotel Trust took over the property last November in an acquisition that included the Hotel Chicago on the north side of the Marina City property but did not include the twin towers or the House of Blues. Pebblebrook has been selling properties since that buyout to pay down its debt load.
And finally, Golub & Co., the Chicago development firm that wants to build a supertall skyscraper next to Tribune Tower, is nearing an agreement with the city for the project. That’s according to downtown Ald. Brendan Reilly, who shared an update with Sun-Times political reporter Fran Spielman.
Golub and its partner CIM Group have “made a lot of progress” addressing concerns about the development’s impact on traffic, according to Reilly. One of the concessions is adding a “cut-through” at the base of the tower so cars arriving on upper Illinois Street can load and unload under the building.
Crain’s Headlines is a joint production between WTTW and Crain’s Chicago Business. It airs every Monday through Thursday on the WTTW News program “Chicago Tonight.”