We aren’t ones to get bogged down in financials and Wall Street and all that jazz. But when one of the largest autoworker unions in the world accuses one of the largest automakers of committing “legalized mass looting,” we tend to notice. And we aren’t the only ones.
Apparently, General Motors announcing the largest stock buyback in the history of the US auto industry doesn’t come without some consequences.
GM’s $20 Billion Shot Heard Around The World
Earlier this week, General Motors held its third-quarter financial conference call. There’s often talk about vehicles, tech, and sales, but these financial calls are primarily aimed at presenting the company’s financial health for investors to consider. And this time around, there was something of a bombshell: a $20 billion stock buyback initiative.
Specifically, GM CEO Mary Barra said in a letter to shareholders that “the new $20 billion multi-year share repurchase authorization we announced today further demonstrates our Board’s commitment to creating even greater shareholder value.” In short, GM is spending money to buy back shares, thus creating fewer shares and, in theory, raising the value for shares held by shareholders.
Following GM’s announcement, it didn’t take long for the United Auto Workers (UAW) Union to issue a response.
“Let’s be clear about what stock buybacks really are. They are a form of legalized mass looting, sending billions of dollars generated by the working class directly to Wall Street investors who’ve never seen the inside of a factory.”
-UAW President Shawn Fain
Fain goes on to mention Barra’s $48 million payday in 2025, once stock value is factored in. Her total compensation dwarfs all other automaker CEOs, and she is among the highest-paid CEOs in the entire auto industry.
Why Such Anger Over This Buyback?
GM Factory ZeroGeneral Motors
Fain’s argument is that, instead of spending money to repurchase stock, that cash could go to GM employees in the form of wage increases, retirement plans, and lower healthcare costs.
“Why don’t 80% of GM’s autoworkers have a pension and retirement healthcare, as they did for half a century?” he said in the statement. “Because someone on Wall Street is collecting their pension check in the form of a goddamn stock buyback. Why is GM nickel and diming their retirees while lavishing shareholders with billions? Because this company has sold its soul to Wall Street.”
The UAW isn’t the only entity upset over GM’s big buyback. According to Automotive News, Michigan’s Democratic and Republican candidates for the US Senate both criticized the automaker’s plan. Democrat Abdul El-Sayed and Republican Mike Rogers are embroiled in a fierce battle ahead of the US midterms, so seeing them agree on anything is… something.
What does General Motors have to say about all this? In a statement to Automotive News, a spokesperson emphasized that the repurchase plan was spread out over multiple years and open-ended, meaning that GM could choose not to go for the full $20 billion. The spokesperson also said it was a “first priority” to invest in the business and employees.
“Since 2020, we’ve reinvested more than $100 billion to fund our growth, including in our products, our factories, and our people. The new repurchase authorization is a meaningful statement of confidence in GM’s ability to fund growth, reward our US employees with the highest profit sharing in the industry, while also returning capital to our shareholder owners.”
CarBuzz Insight – Why This Matters:
2027 cadillac escalade-v 125th anniversary collector seriesCadillac
General Motors just announced a special-edition Cadillac Escalade costing $239,000. The cheapest Chevy Silverado pickup truck is over $40,000. GM sales in 2026 are down overall, and would be down further if it wasn’t for the company’s most frugal and least expensive vehicles, Trax and Trailblazer, having a good year.
Amid all this, is it a bad look to announce a record-setting stock buyback that has debatable benefits for employees but clear benefits for shareholders? It will be interesting to see what happens in 2028 when the UAW and GM negotiate a new contract.
Source: General Motors, UAW, Automotive News
