GM Unveils $6 Billion Buyback, Boosts Dividend Amid Market Pressures

DETROIT, Feb. 26, 2025 /PRNewswire/ — General Motors (NYSE: GM) has announced a significant capital return initiative, including a $0.03 increase in its quarterly dividend and a new $6 billion share repurchase authorization aimed at rewarding investors amid challenging market conditions.

The quarterly dividend will rise from $0.12 to $0.15 per share, effective from the next planned payment in April 2025. Chief Executive Officer Mary Barra emphasized the company’s commitment to shareholders, stating, ‘The GM team’s execution continues to be strong across all three pillars of our capital allocation strategy: reinvest in the business for profitable growth, maintain a strong investment-grade balance sheet, and return capital to our shareholders.’

In conjunction with the dividend hike, GM is set to embark on an accelerated share repurchase (ASR) program amounting to $2 billion, with completion expected in the second quarter of 2025. The total number of shares repurchased will depend on the average volume-weighted price during the program’s duration, which will be executed by Barclays and J.P. Morgan.

Additionally, GM retains $4.3 billion for further opportunistic repurchases outside the ASR program, reinforcing its strategic position for returning capital to shareholders while balancing necessary investments in growth and innovation.

As of December 31, 2024, GM reported having fewer than 1 billion shares outstanding, reaching a goal set by Chief Financial Officer Paul Jacobson earlier in the year. Despite a favorable operational performance and strong results, GM’s stock is currently down more than 12% in 2025, with market analysts highlighting plateauing industry sales and regulatory uncertainties affecting growth prospects.

Jacobson also expressed confidence in GM’s financial stability: ‘We feel confident in our business plan, our balance sheet remains strong, and we will be agile if we need to respond to changes in public policy.’

The company projects capital spending for 2025 to range between $10 billion and $11 billion, which will support ongoing investments, including over $8 billion earmarked for research and product development. This balanced approach reflects GM’s strategy to maintain competitiveness in both traditional internal combustion engine (ICE) vehicles and the expanding electric vehicle (EV) market.

‘We’re growing our business thanks to our broad, deep, and compelling portfolio of ICE vehicles and EVs,’ Barra added, underlining GM’s dual-track strategy that aims to ensure long-term viability and growth amidst evolving market conditions.

The announcement comes as GM navigates through a challenging environment, where industry sales have shown signs of plateauing. Wall Street analysts have echoed concerns, citing significant hurdles such as regulatory challenges and limited growth prospects in the automotive sector.

In summary, GM’s newly approved $6 billion share repurchase program, alongside a 25% increase in quarterly dividends, positions the company to continue offering returns to shareholders while strategically investing in its future.