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However, with the UAW strike behind us, production has resumed, and analysts at Mizuho are expecting to see catalysts.
The estimated $1.5B increase in wages expected in 2024, following the UAW strike, is fully offset by nearly $2B in fixed cost reductions. Also, a refreshed EV ‘Smart Ramp’ focused on profitability, and a pause on a money-losing Cruise investment should help the automaker push back against potential headwinds.
Additionally, a better 2024 production year post-strike interruptions, and a $10B share repurchase of at least ~10% of outstanding shares should also drive share prices.
Mizuho continues to estimate C24E wholesale deliveries of ~4.0M units, up ~8% y/y, with total deliveries, including China JVs at ~7.0M, up ~14% y/y.
Shares of GM are up 2.07% in early trading on Monday.
