General Motors Says UAW Strike Cost $1.1B, But It Can Absorb Rising Labor Costs As It Raises Dividend

CBS Detroit

November 29, 2023 / 9:02 AM EST

General Motors says pretax earnings took a $1.1 billion hit this year due to production lost during a six-week strike by autoworkers, but the company expects to absorb the costs of a new contract and is even raising its dividend.

The Detroit automaker on Wednesday reinstated its full-year earnings forecast that was withdrawn after the United Auto Workers began targeting the factories of Detroit automakers with strikes on Sept. 15. Those strikes continued at GM until Oct. 30.

The company now predicts full-year net income of $9.1 billion to $9.7 billion, down from its previous outlook of $9.3 billion to $10.7 billion. But GM expects to generate more cash for the full year. It expects free cash flow of $10.5 billion to $11.5 billion, an increase from a previous forecast of $7 billion to $9 billion.

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