Â鶹´«Ã½

Autos

    • GM says strike cost US$1.1B, but it can absorb rising labour costs as it raises dividend

    Share
    DETROIT -

    General Motors says pretax earnings took a $1.1 billion hit this year from 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    The Detroit automaker on Wednesday reinstated its full-year earnings forecast that was withdrawn after the United Auto Workers began targeting the factories of Detroit automakers with strikes on Sept. 15.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.

    To get there, GM expects to cut capital spending, including a slowdown in spending on electric vehicles and at Cruise, its troubled autonomous vehicle unit. California regulators revoked the San Francisco-based subsidiary's robotaxi license last month after one of its vehicles dragged a pedestrian to the side of a street after the person was hit by another car.

    Barra wrote that GM expects the pace of Cruise's expansion to cities outside of San Francisco to be more deliberate when driverless taxi operations resume "resulting in substantially lower spending in 2024 than in 2023."

    GM had big plans for Cruise, which it bought eight years ago. The Detroit automaker had been expecting annual revenue of $1 billion from Cruise by 2025 -- a big jump from the $106 million last year. During the first nine months of this year Cruise posted pretax losses of $1.9 billion.

    GM says it will raise its dividend 33% to 12 cents per share starting in January. It's also planning to buy back $10 billion of its shares.

    Shares of GM rose 9% before Wednesday's opening bell, but remain down about 27% in the past year.

    "We are finalizing a 2024 budget that will fully offset the incremental costs of our new labour agreements, and the long-term plan we are executing includes reducing the capital intensity of the business, developing products even more efficiently and further reducing our fixed and variable costs," CEO Mary Barra said in a prepared statement.

    GM, as well as rivals Ford and Jeep maker Stellantis, agreed to new contracts with the UAW that raise top assembly plant worker pay by about 33% by the time the deals expire in April of 2028. The new contracts also ended some lower tiers of wages, gave raises to temporary workers and shortened the time it takes for full-time workers to get to the top of the pay scale.

    At the end of the contract top-scale assembly workers will make about $42 per hour, plus they'll get annual profit-sharing checks.

    UAW President Shawn Fain said during the contract talks that labour costs are only 4% to 5% of a vehicle's costs, and that the companies were making billions and could afford to pay workers more.

    Barra, who will update shareholders on company finances Wednesday, conceded in a letter to investors that she's disappointed in the pace of electric vehicle production, which she attributed to difficulties in assembling batteries.

    But she wrote that GM has made improvements in the organization responsible for the work, and the company expects higher EV production and improved profit margins next year.

    "While the rate of growth for EVs is slowing in the near term, it is projected to accelerate and grow substantially in the long term as customers have more EV choices, and the public charging network expands," Barra wrote.

    Earlier in the year GM delayed electric pickup truck production at a factory north of Detroit until 2025 as the growth rate in electric vehicle sales slowed.

    In June of last year, electric vehicle sales were growing about 90% year over year, according to Motorintelligence.com. But by June of this year, the growth rate had slowed to about 50%, and automakers are fearful it will slow even further with consumers having reservations about how far they can travel and whether charging stations will be available.

    Barra wrote that GM has a strong cash balance due to record profits from selling gas-powered vehicles and more efficient internal combustion and electric vehicle operations.

    "We have a clear path forward that includes greater operating and investment efficiency," she wrote.

    CTVNews.ca Top Stories

    A B.C. woman who stole more than $14,000 in volunteer-raised funds that were supposed to be spent on school supplies and programs – including hot meals for vulnerable kids – won't spend any time in jail.

    Timmins-James Bay MP Charlie Angus was among approximately 120 people who gathered Sunday night for a candlelight vigil near the scene of a vicious attack against a 16-year-old in Cobalt.

    Dr. Ronald Weiss, who performed nearly 60,000 vasectomies on Ottawa men, establishing him as the "Wayne Gretzky" of the procedure, has died.

    A 36-year-old Montreal man who was out on bail after allegedly uttering death threats against his partner is now accused of murdering her on the South Shore.

    A 15-year-old boy from Kitchener, Ont. is facing a long list of criminal charges as the Waterloo Regional Police Service wraps up a lengthy swatting investigation.

    Canada

    • A 36-year-old Montreal man who was out on bail after allegedly uttering death threats against his partner is now accused of murdering her on the South Shore.

    • Family members and friends of a 43-year-old man who was fatally shot by police in Hamilton over the weekend says they’re devastated by his death and are seeking answers and justice for their loved one.

    • Dr. Ronald Weiss, who performed nearly 60,000 vasectomies on Ottawa men, establishing him as the "Wayne Gretzky" of the procedure, has died.

    • A B.C. woman who stole more than $14,000 in volunteer-raised funds that were supposed to be spent on school supplies and programs – including hot meals for vulnerable kids – won't spend any time in jail.

    • A 15-year-old boy from Kitchener, Ont. is facing a long list of criminal charges as the Waterloo Regional Police Service wraps up a lengthy swatting investigation.

    • A team of tornado experts are investigating a path of damage through Wellington County.

    World

    Politics

    Health

    Sci-Tech

    Entertainment

    Business

    Lifestyle

    Sports

    • The Toronto Maple Leafs have placed forward Max Pacioretty on the injured reserve with a lower-body injury, the team announced Monday.

    • Canada will be without captain Alphonso Davies for its upcoming CONCACAF Nations League quarterfinal against Suriname.

    Autos

    Local Spotlight

    For the second year in a row, the ‘Gift-a-Family’ campaign is hoping to make the holidays happier for children and families in need throughout Barrie.

    Some of the most prolific photographers behind CTV Skywatch Pics of the Day use the medium for fun, therapy, and connection.

    A young family from Codroy Valley, N.L., is happy to be on land and resting with their newborn daughter, Miley, after an overwhelming, yet exciting experience at sea.

    As Connor Nijsse prepared to remove some old drywall during his garage renovation, he feared the worst.

    A group of women in Chester, N.S., has been busy on the weekends making quilts – not for themselves, but for those in need.

    A Vancouver artist whose streetside singing led to a chance encounter with one of the world's biggest musicians is encouraging aspiring performers to try their hand at busking.

    Ten-thousand hand-knit poppies were taken from the Sanctuary Arts Centre and displayed on the fence surrounding the Dartmouth Cenotaph on Monday.

    A Vancouver man is saying goodbye to his nine-to-five and embarking on a road trip from the Canadian Arctic to Antarctica.

    • Flames shot out of windows and debris came showering down onto the street as crews battled a fire at a North Vancouver highrise Monday afternoon.

    • Second World War veteran Percival Smith was a teenager when he entered the British Merchant Navy, but after years at sea he emerged as a man who returned to a family he "couldn't even recognize" after the war.

    • Police nabbed an alarming number of drunk or drug-impaired drivers in Abbotsford, B.C., over the long weekend – including 11 on Friday night alone.

    • Family members and friends of a 43-year-old man who was fatally shot by police in Hamilton over the weekend says they’re devastated by his death and are seeking answers and justice for their loved one.

    • A pedestrian has critical injuries after being struck by the driver of a wheelchair-accessible bus in Toronto’s northwest area late Monday afternoon.

    • Police are searching for two suspects who are wanted in connection with the fatal shooting of a man in North York in late September.

    • EXTENDED VIDEO

      EXTENDED VIDEO

      Calgarians observed Remembrance Day at a number of different ceremonies across the city on Monday, including at the Hangar Flight Museum.

    • It's the show of the year or maybe even the decade for Taylor Swift fans, better known as Swifties.

    • Captain Mikael Backlund had a goal and assist to lead the Calgary Flames to a gritty 3-1 victory over the Los Angeles Kings on Monday.

    • Dr. Ronald Weiss, who performed nearly 60,000 vasectomies on Ottawa men, establishing him as the "Wayne Gretzky" of the procedure, has died.

    • Crowds gathered in Ottawa and eastern Ontario on Monday to honour the sacrifice of men and women in uniform who gave their lives in service of Canada.

    • The company confirms it will open the new Chipotle at 5671 Hazeldean Road on Thursday, in the former location of Benny & Co.

    • A 36-year-old Montreal man who was out on bail after allegedly uttering death threats against his partner is now accused of murdering her on the South Shore.

    • Hundreds of people gathered in downtown Montreal on Monday to mark Remembrance Day and honour Canadians who sacrificed their lives in the great wars and beyond.

    • Seventy seniors will be losing their homes come July as Manoir Louisiane, a private seniors’ residence in the Mercier-Hochelaga-Maisonneuve borough will be closing down.

    • Edmonton's Beverly Memorial Cenotaph on Monday hosted its 104th Remembrance Day service to honour past and present veterans.

    • A poster campaign is creating awareness commemorating Edmonton-area soldiers who never came home.

    • Thousands of Maritimers turned out in wet weather Monday to remember those who have served, and continue to serve, in Canada's armed forces for Remembrance Day.

    • A Cape Breton senior recalls her life in German-occupied France, and her mother’s death, during the Second World War.

    • Thousand of people gathered at the Menin Gate in the Ypres, Belgium for Monday’s Remembrance Day Ceremony.

    • Four teenagers have been arrested in connection with the attack and robbery of a 62-year-old woman.

    • A sacred fire burning in Winnipeg has brought healing and hope to some members of Xavia Skye Lynn Butler’s family.

    • A Manitoba-shot Christmas movie was on the nice list at the box office last weekend.

    • November 11th marks a solemn day across Canada, and Regina is no exception.

    • Fire crews reported that no one was hurt after flames broke out in a home on Robinson Street in central Regina.

    • Regina author Valerie Crowther is celebrating the release of her book ‘War Letters: Linking Lives in the Second World War.’

    • A team of tornado experts are investigating a path of damage through Wellington County.

    • A 15-year-old boy from Kitchener, Ont. is facing a long list of criminal charges as the Waterloo Regional Police Service wraps up a lengthy swatting investigation.

    • Family members and friends of a 43-year-old man who was fatally shot by police in Hamilton over the weekend says they’re devastated by his death and are seeking answers and justice for their loved one.

    • Saskatoon Public Library workers will be on strike Tuesday as part of ongoing contract negotiations with SPL.

    • Saskatchewan RCMP are searching for a suspect after a man was seriously injured in a farm-related incident in Montreal Lake.

    • It was a somber day at Mosaic Stadium as members of the Saskatchewan Roughriders officially cleaned out their stalls and closed the book on the 2024 season.

    • Timmins-James Bay MP Charlie Angus was among approximately 120 people who gathered Sunday night for a candlelight vigil near the scene of a vicious attack against a 16-year-old in Cobalt.

    • Remembrance Day has special meaning for Colleen Ludgate and Paul Cousineau of Timmins, whose daughter, Brittney Shki-Giizis, has taken a temporary sabbatical from the Canadian military to help Ukraine.

    • Remembrance Day celebrations took place across the country Monday, with Canadians reflecting on the sacrifices made by the men and women who served our country.

    • WATCH

      WATCH

      Men and women from Canadian Services, along with those who serve on local police forces marched up Dufferin Ave. toward the cenotaph on Monday morning.

    • Failing to comply with a property standards order issued by city hall could add almost $100,000 to the tax bill of a prominent eyesore in east London.

    • Oxford OPP say that they are investigating a collision that resulted in serious injuries on Sunday evening.

    • A Barrie man is accused of being at the centre of an alleged $2.2 million stolen used car scheme.

    • Barrie Mayor Alex Nuttall is acting unilaterally for one of the only times of his tenure thus far to help ensure a renovation project of a youth shelter gets completed.

    • Police say a 51-year-old from Stouffville died after a collision in East Gwillimbury Monday afternoon.

    • A local high school honoured veterans of the “Forgotten War†on Monday.

    • video

      video

      Upwards of 1000 handmade poppies are on display outside Lifetimes on Riverside Retirement home on Riverside Drive East, part of its fourth annual Poppy Project.

    • A pair of thieves ripped the door of an east Windsor sports apparel store on Monday morning, leaving the store owner on the hook for thousands in stolen merchandise.

    • A B.C. woman who stole more than $14,000 in volunteer-raised funds that were supposed to be spent on school supplies and programs – including hot meals for vulnerable kids – won't spend any time in jail.

    • A B.C. teen has a suspected case of H5N1 avian flu — the first known human to acquire the virus in Canada.

    • Second World War veteran Percival Smith was a teenager when he entered the British Merchant Navy, but after years at sea he emerged as a man who returned to a family he "couldn't even recognize" after the war.

    • A B.C. woman who stole more than $14,000 in volunteer-raised funds that were supposed to be spent on school supplies and programs – including hot meals for vulnerable kids – won't spend any time in jail.

    • The emergency department at South Okanagan General Hospital in Oliver, B.C., will be closed for 31 hours this weekend, the second such closure in a week and the third since the start of November.

    • Police in Kamloops, B.C., are reminding parents and guardians to check their children's Halloween candy after receiving a report of a mother finding a razor blade in one of her daughter's treats.

    • If you were at the cenotaph Remembrance Day ceremonies in Lethbridge, you may have caught a glimpse of our Dory Rossiter there on crutches.

    • Canadians across the country spent Monday paying tribute to the soldiers who have fought and died while serving Canada.

    • The Southern Alberta Recreation Association is officially announcing the Town of Taber as next year’s host for the Southern Alberta Summer Games.

    • Remembrance Day celebrations took place across the country Monday, with Canadians reflecting on the sacrifices made by the men and women who served our country.

    • Timmins-James Bay MP Charlie Angus was among approximately 120 people who gathered Sunday night for a candlelight vigil near the scene of a vicious attack against a 16-year-old in Cobalt.

    • It was just days before the COVID-19 pandemic shut the world down when the Shaft Bottom Boys of Sudbury broke a world record for 'Deepest Concert Underground.' Now, more than four years later, a Timmins band is looking to take the title.

    N.L.

    Shopping Trends

    The Shopping Trends team is independent of the journalists at Â鶹´«Ã½. We may earn a commission when you use our links to shop. Read about us.

    Stay Connected
    Follow Â鶹´«Ã½