General Motors (GM, Financial) has announced plans to repurchase $6 billion worth of its own shares and increase its quarterly dividend. This decision comes as the automotive industry grapples with policy uncertainties stemming from changes proposed by former U.S. President Donald Trump, including potential tariffs and reduced support for electric vehicles.
According to Chief Financial Officer Paul Jacobson, GM remains confident in its business strategy and maintains a strong balance sheet, which allows it to adapt to public policy changes as needed. The buyback plan does not have a set expiration date, but GM aims to complete the initial $2 billion repurchase by the end of the second quarter.
Additionally, GM plans to raise its quarterly dividend by 3 cents, bringing it to 15 cents per share. This move is part of a series of significant stock repurchase initiatives by the company. In 2021, GM had approximately 1.45 billion shares outstanding, but the number of publicly traded shares has since fallen to under 1 billion.
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