GM\u2019s head honcho reiterated that it\u2019s working to overcome a manufacturing constraint that has hampered the assembly of battery modules for its Ultium-based EVs like the Chevrolet Equinox EV, Chevrolet Silverado EV, and GMC Sierra EV.<\/p>\n
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General Motors EV lineup<\/p>\n
In a surprise move, the company announced that it will boost its dividend by 33% next year and repurchase $10 billion worth of shares, making it its biggest-ever buyback plan, according to Bloomberg<\/em>. These, along with two other points on the company\u2019s investor-focused agenda\u2013reinstating the 2023 earnings guide and cutting spending on the Cruise robotaxi venture\u2013resulted in a roughly 10% bump in the share price.<\/p>\n At the same time, however, the increased financial burden following the signing of a new labor contract with representatives of the United Auto Workers union\u2013which will cost GM $9.3 billion through 2028\u2013made some analysts uneasy about the automaker\u2019s ability to pull through.<\/p>\n Barra responded by saying that GM will offset the increased labor costs \u201ccompletely\u201d by sticking to its four-pillar strategy.<\/p>\n \u201cOur strategy is clear,\u201d Mary Barra said during an interview with Bloomberg. \u201cIt\u2019s really based on four pillars of executing our strong internal-combustion engine program vehicles, we\u2019re performing very well on the market and we see that we\u2019re below the average incentives. I think that speaks to the strength of our internal combustion engine products,\u201d Barra added.<\/p>\n \u201cFrom an EV perspective, we have confidence in the portfolio we have. We\u2019re a bit disappointed this year that we were constrained by the automation to build [battery] modules, so this is not something that is fundamentally an issue with Ultium, it was more a manufacturing automation issue that we\u2019re working on and we\u2019ll be out of it by the middle of next year, and making improvements every quarter,\u201d General Motors\u2019 head said.<\/p>\n<\/blockquote>\n Software and autonomy are also part of the company\u2019s strategy to turn things around. The introduction of more affordable EVs such as the Equinox and next-gen Ultium-based Bolt is also expected to drive adoption.<\/p>\n GM \u201cnever saw EV adoption as a straight line,\u201d Barra explained, adding that while the growth rate has decreased, it\u2019s still growing.<\/p>\n\n