General Motors Company (NYSE:GM) reported better-than-expected third quarter financial results but has pulled its full-year 2023 guidance as the ongoing United Auto Workers (UAW) strike against GM’s factories has made forecasting its future financial performance difficult.
The company had earlier guided full-year earnings before interest and taxes in the range of $12 billion to $14 billion and profits attributable to stockholders in the range of $9.3 billion to $10.7 billion.
The carmaker said Tuesday that the UAW strikes, now in their sixth week, have cost them $800 million to date and it expects about $200 million per week in labor action-related costs per week going forward.
The carmaker also withdrew its electric vehicle strategy in North America, the goal of which had been to build 400,000 EVs from 2022 through to mid-2024.
GM CEO Marry Barra told investors that the company will slow its electric vehicle strategy to match production to demand to avoid deep discounts, prioritizing profits ahead of its sales targets.
For the third quarter, the automaker posted revenue of $44.1 billion, almost a billion dollars more than the $43.3 billion expected by Wall Street analysts.
Adjusted earnings per share of $2.28 also sped past estimates of $1.84.
Shares of General Motors traded higher following its results, up 0.5% at US$29.36 shortly before noon on Tuesday.
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