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GM board approves stock repurchase authorization

Kalea Hall, The Detroit News on

Published in Automotive News

General Motors Co. announced Tuesday its board approved a $6 billion stock repurchase authorization in an effort to continue increasing shareholder value.

“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,” said Paul Jacobson, GM executive vice president and chief financial officer, in a statement. “We are very focused on the profitability of our ICE 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.”

The move comes after GM in November 2023 launched a $10 billion accelerated share repurchase program. With the new authorization approval, GM can repurchase shares beginning when its previous authorization ends. There's no timeframe for when the new authorization has to be completed.

 

In the first quarter of 2024, GM repurchased $0.3 billion in shares, and expects to exhaust the remaining $1.1 billion of its prior authorization before the end of the second quarter.

GM also increased its common stock dividend 33%, from $0.09 to $0.12 per share, in the first quarter.


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