General Motors CEO Mary Barra (center) at the New York Stock Exchange on November 17, 2022.
Source: New York Stock Exchange
Detroit – General Motors It was announced on Tuesday that a new $6 billion stock repurchase authorization had been approved by the board of directors.
The new repurchase authorization comes as a $10 billion accelerated stock repurchase program announced in November 2023 is expected to be completed by the end of this month.
GM Chief Financial Officer Paul Jacobson said: “We are very focused on the profitability of our (internal combustion engine) business, and we are developing and improving the profitability of our electric vehicle business and deploying our capital efficiently. This Allowing us to continue returning cash to shareholders. said in a press release.
The automaker said the new authorization would allow GM to repurchase stock on an opportunistic basis after the existing reauthorization is completed. A timetable for completion of the program has not yet been announced.
General Motors shares rose 1% in premarket trading. The stock closed at $47.57 on Monday, up about 32.4% this year.
The announcement of the buyback program comes amid uncertainty over the adoption of all-electric vehicles on which GM is betting heavily and as customer demand for new vehicles stalls.
“GM’s investments over the past several years in its brands and product portfolio and the company’s operating discipline are delivering continued strong revenue growth, margins and free cash flow,” Jacobson said.
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