TSLA - Higher-Than-Expected Consequences Of The UAW Strike Did Not Erase GM's Great Recession Restructuring Era Efforts | Benzinga
Earlier today, General Motors (NYSE: GM) delivered some much-needed good news. Although its new labor contracts in North America will be raising costs with consequences of the bitter UAW strike being greater than expected, GM expects to fully offset these hits.
GM’s Updates
The new labor agreements will result in costs of $9.3 billion, or an average of $575 per vehicle. GM also revealed the cost of the UAW strike added up to $1.1 billion, being the result of lost production of 95,000 vehicles. Although higher than initially expected, GM expects to earn nearly $10 billion this year. Therefore, GM expects to "fully offset” these higher labor costs in 2024.
GM’s Revised Guidance
GM guided for this year’s net income to be in the range between $9.1 billion to $9.7 billion, which is lowered from its priorly guided range between $9.3 billion and $10.7 billion. GM forecasted adjusted earnings before interest and taxes in the range between $11.7 billion an $12.7 billion, also lowering its prior guidance ...