Mary Barra, CEO of General Motors, center, at the New York Stock Exchange, November 17, 2022.
Source: NYSE
DETROIT – General engines announced Tuesday that a new $6 billion share repurchase authorization has been approved by the 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 this month.
'We are very focused on the profitability of our company [internal combustion engine] We are growing and improving the profitability of our EV business and deploying our capital efficiently. This allows us to continue returning cash to shareholders,” said GM CFO Paul Jacobson said in a press release.
The new authorization will allow GM to opportunistically repurchase shares following the completion of the existing reauthorization, the automaker said. A timetable for the program's completion was not 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 all-electric vehicles, which GM has been betting heavily on, and a stagnation in customer demand for new vehicles.
“The investments GM has made in recent years in its brands and product portfolio, and the company's operating discipline, are delivering consistently strong sales growth, margins and free cash flow,” Jacobson said.
