General Motors Greenlights $6 Billion Share Buyback Plan

Money | June 11, 2024, 6:44 a.m.

General Motors has approved a new $6 billion stock repurchase authorization alongside the completion of a $10 billion share repurchase program this month. GM's CFO, Paul Jacobson, emphasized the focus on profitability and efficient capital deployment to support the company's internal combustion engine and EV businesses. The new authorization allows GM to opportunistically repurchase shares after completing the existing reauthorization with no set timeframe for completion. The company's stock saw an increase in premarket trading following the announcement, with shares closing at $47.57, up 32.4% for the year. Despite challenges in the market, GM's strong revenue growth, margins, and free cash flow demonstrate the success of previous investments in brands and product portfolios. The buyback plans reflect GM's confidence in its strategic direction and commitment to returning value to shareholders.