June 23, 2024

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GM board approves new $6 billion share buyback authorization

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

Source: NYSE

DETROIT – General Motors on Tuesday announced a new $6 billion stock repurchase authorization has been approved by its board.

The new buyback authorization comes as an accelerated $10 billion share repurchase program announced in November 2023 is expected to be completed by the end of this month.

“We are very focused on the profitability of our [internal combustion engine] business, we’re growing and improving the profitability of our EV business and deploying our capital efficiently. This allows us to continue returning cash to shareholders,” GM CFO Paul Jacobson said in a release.

The new authorization will allow GM to opportunistically repurchase shares after the completion of the existing reauthorization, the automaker said. A timeframe for completion of the program was not announced.

Shares of GM were up 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 stalling customer demand for new vehicles.  

“The investments GM made in its brands and product portfolio over the last several years, and the company’s operating discipline, are delivering consistently strong revenue growth, margins and free cash flow,” Jacobson said.

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2024-06-11 07:39:51

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