GM Announces $10 Billion Stock Buyback and 33% Dividend Increase Amid Labor Cost Increases

Despite a $9.3 billion hit from new labor contracts and a six-week UAW strike costing $1.1 billion, GM expects to offset these costs with efficiency gains and cost reductions.

General Motors (GM) has announced a $10 billion stock buyback plan, a 33% dividend increase, and plans to cut spending at its troubled robotaxi unit, Cruise.
GM's new labor contracts with the United Auto Workers (UAW) and Canadian union Unifor will cost the company $9.3 billion through 2028, translating to about $575 per vehicle over the life of the deals.
Despite a six-week UAW strike costing the company $1.1 billion in lost production, GM expects to offset these costs with $2 billion worth of annual efficiency gains and cost reductions by the end of next year.
GM's stock price rose 9.38% following the announcement, but shares are still down over 20% in the past year.
GM CEO Mary Barra has expressed disappointment with the company's electric vehicle production due to difficulties in assembling batteries, but expects higher EV production and improved margins in 2024.