Due to $2 billion worth of annual efficiency gains and cost reductions expected by the end of next year, the company said it can can handle $9.3 billion in labor cost increases from US and Canadian union contracts through April of 2028.

General Motors said on Wednesday its new labor deals after a lengthy U.S. strike will cost it $9.3 billion even as it outlined $10 billion in share buybacks, a 33% dividend increase and "substantially lower" spending at its robotaxi unit Cruise.

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.

General Motors said on Wednesday its new labor deals following a lengthy U.S. strike will cost it $9.3 billion over the life of the agreement, even as it outlined $10 billion in share buybacks, a 33% dividend increase and reduced spending at its robotaxi unit Cruise.