(Reuters) – General Motors said on Wednesday it was considering $10 billion (9.1 billion euros) in share buybacks as well as a 33% dividend increase and a “substantial reduction” in spending at its manufacturing unit. robotaxis Cruise.
The announced share buyback is equivalent, compared to Tuesday’s closing price, to almost a quarter of GM’s market capitalization.
On the New York Stock Exchange, GM shares climbed 10.73% on Wednesday in early trading.
“We will return significant capital to shareholders,” GM Chief Executive Mary Barra said in a statement outlining updated goals for the largest U.S. automaker.
Following the strike by the United Auto Workers (UAW) union in the United States, the American automaker has lowered its profit forecasts for 2023.
Social agreements with the UAW and the Canadian union Unifor will represent a cost of 9.3 billion dollars (8.48 billion euros) by 2028, GM announced on Wednesday, which represents approximately 575 dollars per vehicle product over the life of the agreements.
Net income attributable to shareholders for 2023 is now expected in a range of $9.1 billion to $9.7 billion, compared to the previous forecast of $9.3 billion to $10.7 billion.
(Reporting by David Shepardson in Washington, with contributions from Ben Klayman in Detroit; by Gaëlle Sheehan, edited by Blandine Hénault)
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