- Russian prosecutor demands 3 years prison for French researcher
- 'Innocent' British nerve agent victim caught in global murder plot: inquiry
- Afghan Taliban vow to implement media ban on images of living things
- Russian prosecutor demands 3 years, 3 months jail for French researcher
- England ready for Pakistan's spin assault in second Test
- New Zealand's Ravindra excited for India Tests with father in crowd
- India's capital bans fireworks to curb air pollution
- Stocks diverge, oil retreats as China disappoints markets
- FIFA to open 'global dialogue' on transfer system after Diarra ruling
- Trio wins economics Nobel for work on wealth inequality
- Starmer vows to cut red tape as he urges foreign investors to 'back' UK
- Ex-Stasi officer jailed over 1974 Berlin border killing
- 'Not viable': Barcelona turns against surging tourism
- Hezbollah says targeted Israeli naval base after deadly drone strike
- Rice praises 'unbelievable' England interim boss Carsley despite uncertainty
- Nepali teenager hailed as hero after climbing world's 8,000m peaks
- England captain Stokes back from injury for second Pakistan Test
- Shanghai stocks gain after stimulus briefing as markets rally
- Shanghai stocks gain after stimulus briefing as Asian markets rally
- South Korea military says 'fully ready' as drone flights anger North
- Pakistan 'vigilantes' behind rise in online blasphemy cases
- Nearly 90, but opera legend Kabaivanska is still calling tune
- Smith experiment as Test opener over, Green out of India series
- With inflation down, ECB eyes faster tempo of rate cuts
- Is life possible on a Jupiter moon? NASA goes to investigate
- Dodgers crush Mets 9-0 in MLB playoff series opener
- South Korea military says 'fully ready' as drone tensions soar
- Cummins back, Marsh and Head out of Pakistan ODI series
- Shanghai stocks swing after stimulus briefing as most of Asia rises
- New Zealand's Latham promises 'no fear' as he takes charge for India Tests
- Kyrgios vows to 'shut up' doubters with December comeback
- Public hearings start into death of Brit by Russian nerve agent
- Ex-Stasi officer faces verdict over 1974 Berlin border killing
- Role of government, poverty research tipped for economics Nobel
- 'Stolen satire' feeds US election misinformation
- Rookie McCarty captures first PGA Tour title in Black Desert Championship
- Australia all-rounder Green ruled out of India Test series
- Seeing double in Nigeria's 'twins capital of the world'
- UK FM to attend EU foreign affairs talks for first time in 2 years
- Carter, Billups among 13 new Basketball Hall of Fame inductees
- Ravens rip Commanders as Lions lose NFL sacks leader in win
- Hezbollah drone strike kills four, wounds dozens at Israeli base
- China says launches military drills around Taiwan
- Stewart leads Liberty past Lynx to level WNBA Finals
- England return to winning ways in Nations League, Austria thrash Norway
- UN chief says attacks on UNIFIL 'may constitute a war crime'
- Ravens outlast Commanders while Bucs batter Saints in NFL
- Dozens hurt in Israel as Hezbollah claims drone strike
- England deserve 'world class' coach: Carsley
- Burkina Faso win to become first qualifiers for 2025 AFCON
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.
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.
GM announced a $10 billion "accelerated" share repurchase program and plans to boost its dividend by 33 percent.
"GM will deliver very strong profits in 2023," said Chief Executive Mary Barra.
"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."
GM also reinstated and adjusted its full-year profit outlook now that its cost picture is resolved following a new contract with the UAW.
The company withdrew its financial forecast in October in the middle of a weeks-long UAW strike that also affected fellow Detroit "Big Three" automakers Ford and Stellantis.
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 estimated the total cost increase from new labor contracts at $1.5 billion in 2024 compared with the prior contracts.
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.
"The net result has been higher than expected but not significantly," said Barra, adding that the contracts will add about $500 per vehicle in 2024 and $575 over the life of the UAW contract.
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.
California in October halted testing of the program after a self-driving car operated by Cruise ran over a woman who had first been knocked in front of it by a hit-and-run driver in San Francisco.
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.
O.Johnson--AMWN