General Motors on Tuesday announced a new $6 billion share buyback plan, just over a month after the automaker raised its dividend on upbeat annual forecast, citing stable prices and demand for gasoline-engine vehicles.
The company had in November outlined a $10 billion stock buyback on the heels of reaching a costly new labor agreement with the United Auto Workers union.
GM completed the first tranche in the first quarter and is on track to reduce its outstanding share count to under 1 billion. Its market capitalization was $54 billion as of latest close, as per LSEG data.
GM had in January raised its dividend by 33% to 12 cents per share. Its shares were up 1% in premarket trading.
While the automotive industry undergoes significant transformation, gasoline vehicle demand remains a cornerstone of GM’s business strategy. The $6 billion share buyback reflects GM’s strategic focus on maximizing shareholder value. Transitioning smoothly to electric vehicles while meeting current demand for gasoline vehicles is crucial.
GM’s proactive approach positions it favorably in a dynamic market landscape. By capitalizing on gasoline vehicle demand, GM demonstrates its adaptability and commitment to sustainable growth. As the automotive industry evolves, GM’s strategic initiatives ensure its continued success and relevance.
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