With Auto Strike Over, GM Announces Big Share Buybacks
General Motors announced hefty new initiatives Wednesday to return billions of dollars to shareholders, lifting its stock price as it estimated the recent labor strike hit at $1.1 billion
New York, (UrduPoint / Pakistan Point News - 29th Nov, 2023) General Motors announced hefty new initiatives Wednesday to return billions of Dollars to shareholders, lifting its stock price as it estimated the recent labor strike hit at $1.1 billion.
The automaker lost about 95,000 vehicles in 2023 due to the United Auto Workers labor stoppage, executives said, adding that the overall cost of the new multi-year contract was modestly higher than executives had expected.
"We are finalizing a 2024 budget that will fully offset the incremental costs of our new labor agreements and the long-term plan we are executing includes reducing the capital intensity of the business, developing products even more efficiently, and further reducing our fixed and variable costs."
Workers ratified contracts with a 25 percent wage increase for hourly employees earlier this month.
Executives said the manufacturing of key GM pickups at plants that experienced strikes are back at pre-strike levels.
GM had been girding for a difficult labor negotiation after tough contract talks at other industrial companies such as John Deere and UPS, Barra told analysts on a conference call.
GM said next year it expects to spend hundreds of millions of dollars less on its Cruise autonomous auto program, where operations were suspended recently due to safety concerns following a series of accidents.
Barra said GM would modify Cruise's operations following independent safety and incident reviews.
The company will be "very deliberate about how we go forward" as it works to build trust with regulators, Barra said.
Shares of GM jumped nearly 10 percent in pre-market trading.
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