Royal Assets - GM Shares Rise After Reconfirming 2023 Guidance and $10B Buyback

NORTH BRIDGE ROAD, Singapore - Nov. 29, 2023 - PRLog -- When announcing third-quarter profits, the business retracted its 2023 full-year projection, citing uncertainties caused by the United Auto Workers (UAW) strike against Detroit's Big Three manufacturers, GM, Ford (F), and Stellantis (STLA).

The reintroduced forecast includes an expected $1.1 billion EBIT-adjusted effect from the UAW strike, mostly from missed output, according to GM.

"GM now anticipates full-year 2023 capital spending to be $11.0 billion-$11.5 billion, which is at the low end of its prior guidance range of $11.0 billion-$12.0 billion, driven by the previously announced retiming of certain product programs and more capital-efficient investment," a statement from GM said.

GM's agreement with the UAW also contained considerable salary increases, which will boost GM's expenditures. According to the carmaker, the overall added cost of the labor agreement may be $9.3 billion during the contract's duration, which expires in 2028, with an average vehicle cost effect of roughly $575.

The corporation also said that it will spend $10 billion to retire $6.8 billion of GM ordinary shares. Prior to the repurchase program, the carmaker had around 1.37 billion shares of common stock outstanding. Beginning in 2024, the company's common stock dividend will be increased by $0.03 each quarter to $0.12.

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