Monday, June 17, 2024
HomeBusinessGM board approves new $6 billion share buyback authorization

GM board approves new $6 billion share buyback authorization

General Motors CEO Mary Barra, center, at the New York Stock Exchange, Nov. 17, 2022.

Source: New York Stock Exchange

DETROIT – General Motors On Tuesday it announced that its board of directors had approved a new stock buyback authorization worth $6 billion.

The new buyback authorization comes as an accelerated $10 billion share buyback program announced in November 2023 is expected to conclude later this month.

“We are very focused on the profitability of our (internal combustion engine) business, we are growing and improving the profitability of our electric vehicle business and deploying our capital efficiently. This allows us to continue returning cash to shareholders,” he said GM CFO Paul Jacobson. he said in a statement.

The new authorization will allow GM to opportunistically repurchase shares after completing the existing reauthorization, the automaker said. No timeline for the program’s completion was announced.

GM shares rose 1% in premarket trading. The stock closed Monday at $47.57, up about 32.4% this year.

The announced buyback plans come amid uncertainty surrounding the adoption of all-electric vehicles, which GM has bet heavily on, and stagnant customer demand for new vehicles.

“The investments GM has made in its brands and product portfolio over the past several years, and the company’s operational discipline, are driving consistently strong revenue, margin and free cash flow growth,” Jacobson said.

Don’t miss these CNBC PRO exclusives

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments