23 Jun, 2024

GM scales back electric vehicle and self-driving car plans as new labor deals will cost it $10B

General Motors says it is pumping the brakes a little on its plans for electric vehicles and self-driving cars as new labor deals signed with unions in the US and Canada will cost it almost $9.3 billion US.

Despite those costs, the automaker says it plans to buy back up to $10 billion US of its own shares, while also increasing its dividend by 33 per cent.

The buyback was the equivalent at Tuesday’s closing price to nearly a quarter of GM’s common stock. Its shares were down about 14 per cent this year before rising 10 per cent to $31.92 on Wednesday.

The Detroit automaker also lowered 2023 profit expectations after the US strike by the United Auto Workers (UAW).

GM has struggled to increase its stock price as it dealt this year with the UAW strike, and with problems at its Cruise self-driving vehicle unit and rollout of its new electric vehicles.

The $9.3 billion US in additional costs through 2028 is for agreements with the UAW as well as Canadian union Unifor, and translates to about $575 per vehicle over the life of the deals.

“Finally, some good news for GM, and this was a strong outlook

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