General Motors CEO Mary Barra, center, at the New York Stock Exchange on November 17, 2022.
Source: NYSE
DETROIT – General engines announced Tuesday that a new $6 billion share repurchase authorization had been approved by its board of directors.
The new repurchase authorization comes as an accelerated $10 billion share repurchase program announced in November 2023 is expected to be completed by the end of that month.
“We are very focused on the profitability of our business (internal combustion engines), we are growing and improving the profitability of our EV business and deploying our capital efficiently. This allows us to continue to return money to shareholders” , said GM Chief Financial Officer Paul Jacobson. said in a statement.
The new authorization will allow GM to repurchase shares opportunistically after the existing reauthorization is completed, the automaker said. No timeline for completion of the program has been announced.
Shares of GM 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 fully electric vehicles, on which GM has bet heavily, and dampening customer demand for new vehicles.
“The investments GM has made in its brands and product portfolio over the past several years, along with the company’s operating discipline, are driving strong growth in revenue, margins and free cash flow,” Jacobson said. .
News Source : www.cnbc.com
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