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

DETROIT, MI (AP)— 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.

Wednesday, the Detroit automaker reinstated its full-year earnings forecast that was withdrawn during the United Auto Workers strike that ended at GM on October 30th. The company now predicts full-year net income of $9.1 billion to $9.7 billion, down from its pre-strike outlook.

But GM expects to generate more cash for the full year. It plans to cut capital spending, including a slowdown in spending on electric vehicles and at Cruise, its troubled autonomous vehicle unit.

GM says it will raise the dividend 33 percent to 12 cents per share starting in January.

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