- General Motors’ (GM) shares rose 4.24% to $48.69 after announcing a $0.03 quarterly dividend increase to $0.15 starting April 2025 and a $6 billion share repurchase program, with $2 billion already in motion via an accelerated share repurchase.
- CEO Mary Barra highlighted strong execution driving growth through a diverse ICE and EV portfolio, with 2025 capital spending set at $10 billion-$11 billion and R&D exceeding $8 billion to sustain margins and cash flows.
- CFO Paul Jacobson emphasized a robust balance sheet and flexibility for policy shifts, with the buyback and dividend hike reinforcing GM’s capital allocation strategy amid investments in battery tech and a competitive auto market.
General Motors’ (GM) stock rose $1.98, or 4.24%, to $48.69 in early Wednesday trading, supported by the automaker’s announcement of a $0.03 per share hike in its quarterly dividend to $0.15 – set to kick in with the April 2025 payout – and a fresh $6 billion share repurchase program, $2 billion of which is already underway via an accelerated share repurchase agreement. CEO Mary Barra framed the moves as a testament to GM’s disciplined capital allocation, spotlighting robust execution across reinvestment for growth, balance sheet strength, and shareholder returns, with the company leveraging a diverse lineup of internal combustion engine vehicles and EVs to fuel profitable expansion. The company’s financial muscle is evident in its 2025 plans – capital spending pegged at $10 billion to $11 billion, including battery cell joint ventures, and over $8 billion earmarked for R&D – reflecting a strategic bet on electrification alongside its legacy strengths.
CFO Paul Jacobson underscored confidence in GM’s trajectory, noting a fortified balance sheet and agility to navigate policy shifts, with the $6 billion buyback authorization reinforcing a commitment to returning capital amid a business generating strong margins and cash flows. The dividend bump, a 25% increase from the prior $0.12 rate, signals optimism in sustained performance, while the repurchase program – kicking off with a $2 billion accelerated share repurchase (ASR) – aims to juice shareholder value in a market where GM’s EV pivot, including models like the Cadillac Lyriq and Chevy Equinox EV, is gaining traction. Last month’s spending guidance highlights a balanced approach, marrying hefty investments in next-gen tech with a portfolio that still leans on profitable trucks and SUVs, a mix that’s kept GM competitive against Tesla (TSLA) and emerging Chinese EV players.
GM’s 4% plus share pop this morning reflects investor applause for a strategy that doesn’t skimp on growth – $18 billion-plus in combined capex and R&D for 2025 – while rewarding loyalty with enhanced dividends and buybacks, a playbook honed since its post-bankruptcy resurgence. Barra’s emphasis on “strong execution” isn’t just rhetoric; it’s backed by a cash-generative core that lets GM fund its autonomous tech via Cruise, even as global EV adoption wobbles. Jacobson’s nod to policy agility hints at readiness for tariff or subsidy curveballs, positioning GM to flex its scale and versatility in a choppy auto landscape, with Wednesday’s gains signaling market faith in this dual-track approach.
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