General Motors on Wednesday said the UAW's six-week strike cost the automaker about $1.1 billion (all figures in USD). It also reinstated its guidance for 2023, saying it now expects to earn nearly $10 billion, and said it would buy back $10 billion in shares from stockholders.
"GM will deliver very strong profits in 2023 thanks to an exceptional portfolio of vehicles that customers love and our operating discipline," GM CEO Mary Barra said in a statement.
"We are finalizing a 2024 budget that will fully offset the incremental costs of our new labour 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. With this clear path forward, and our strong balance sheet, we will return significant capital to shareholders."
GM said its new contracts with the UAW and the Unifor union in Canada would increase its North American labour costs by about $1.5 billion in 2024, or $500 per vehicle. The two contracts are expected to cost $9.3 billion in total, or an average of $575 per vehicle, the automaker said.
Shares in GM rose 8.9 per cent to $31.46 in premarket trading Wednesday.