General Motors (GM) announced Tuesday that its board has approved a new repurchase authorization to buy back up to $6 billion of the automaker’s common stock. This move follows GM’s first-quarter performance, where it surpassed Wall Street estimates due to strong demand for gas-powered vehicles. In November, GM announced a $10 billion share buyback, with $1.4 billion in capacity remaining from that plan. The company repurchased $300 million shares in Q1 and plans to buy back the remaining $1.1 billion by the end of Q2. Additionally, GM raised its dividend by 33% to 12 cents per share in January.
GM’s strategic focus includes maximizing the profitability of its internal combustion engine (ICE) business and improving the profitability of its electric vehicle (EV) business. Paul Jacobson, GM’s executive vice president and CFO, emphasized the importance of efficient capital deployment and returning cash to shareholders. This strategy has led to a market capitalization of nearly $54 billion, with shares up 1.8% in early trading Tuesday and a 50% rise since the $10 billion buyback announcement in late November. The new buyback authorization allows GM to opportunistically repurchase shares after completing the existing plan.