Six-week strike in the US cost General Motors US$1.1 billion

General Motors (GM) revealed this Wednesday that the six-week strike in some of its centers job in the United States it cost US$ 1.1 billion, while the labor agreement that ended the strikes will increase spending by vehicle at US$575.

In total, the transfers that GM agreed to with the United Auto Workers (UAW) union for the signing of a new collective agreement, from salary increases to 25% Improvements in the conditions of temporary workers and retirees will cost the company about US$9.3 billion.

These figures were revealed by GM when announcing the reset of its profit forecasts for 2023, an accelerated share buyback program worth US$ 10 billion, as well as its “intention to increase” a 33% the dividends it pays from January 2024.

Following the announcement, GM shares opened in the markets this Wednesday with an increase of almost 10%.

GM now expects its net profits in 2023 to be between $9.1 billion and $9.7 billion, between $1 billion and $300 million less than previously anticipated.

Regarding adjusted operating profit (adjusted ebit), the company estimates that it will obtain between US$11.7 billion and US$12.7 billion. It had previously anticipated between US$12,000 and US$14,000 million.

Finally, GM anticipates that by 2023 its capital spending will be between US$11,000 and US$11,500 million, slightly lower than the initial forecast.

The president and CEO of GM, Mary Barra, assured in a statement that GM will produce “very solid benefits” in 2023.

Barra also stated that the company is finalizing budgets for 2024, which “will completely offset the incremental costs” of the labor agreements reached at the end of October.

The board explained that the company’s plans include reducing “capital intensity” of the company, the most efficient development of new products and “a further reduction” of GM’s fixed and variable costs.

“With this clear path of progress, and our solid results sheet, we will deliver a significant return on capital to shareholders,” Barra ended up pointing out.