General Motors (GM) CEO Mary Barra voiced disappointment in the company’s electric vehicle (EV) production for 2023, attributing challenges to constraints. However, optimism prevails as GM unveils a $10 billion buyback plan, a 33% increase in dividends, and reduced spending on Cruise.
Barra acknowledged disappointment but remained confident, stating, “Although I am disappointed with our Ultium-based EV production in 2023, we have made substantial improvements.” The setback was clarified as a manufacturing hurdle related to automation in building modules, not an Ultium issue. Barra highlighted ongoing improvements and expressed expectations to overcome challenges by mid-next year.
Despite the setback, GM’s stock witnessed a 10% surge following the strategic announcements. The labor contract, incurring $9.3 billion through 2028, includes significant wage increases, improved retirement benefits, and healthcare enhancements, alongside a signing bonus and paid leave. Barra assured stakeholders that the costs would be offset, maintaining a commitment to balance diverse interests.
GM’s liquidity is reported at record levels, prompting the reinstatement of full-year guidance. Barra anticipates net income between $9.1 billion and $9.7 billion, with capital spending at the lower end of previous estimates. The CEO acknowledged the nonlinear trajectory of EV adoption but emphasized continuous market growth.
In driving EV adoption, Barra stressed the significance of upcoming products like the Blazer EV and enhanced charging infrastructure. Notably, Barra highlighted the pivotal role of affordable GM EV models, particularly the electric Chevy Equinox and the next-gen Bolt, in gaining substantial market share.
