DETROIT, Feb. 26,
2025 /PRNewswire/ -- General Motors (NYSE: GM) today
announced that its Board of Directors has approved a $0.03 per share increase in the quarterly common
stock dividend rate beginning with the next planned dividend, as
well as a new $6 billion share
repurchase authorization. The company has entered into an
accelerated share repurchase (ASR) program to execute $2 billion of the share repurchase
authorization.
"The GM team's execution continues to be strong across all three
pillars of our capital allocation strategy, which are to reinvest
in the business for profitable growth, maintain a strong investment
grade balance sheet, and return capital to our shareholders," said
Mary Barra, chair and CEO. "We are
growing our business thanks to our broad, deep, and compelling
portfolio of ICE vehicles and EVs. At the same time, we are
investing our capital in a disciplined and consistent way to
continue generating strong margins and cash flows."
As the company shared last month, capital spending in 2025 is
expected to be in the range of $10 billion - $11 billion, inclusive of investments in the
company's battery cell manufacturing joint ventures. Spending on
research and product development is expected to be more than
$8 billion.
The new quarterly dividend rate of $0.15 per share represents a $0.03 per share increase from the previous
quarterly dividend of $0.12 per
share. It will take effect with the company's next planned
dividend, which is expected to be declared in April 2025.
"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," said Paul
Jacobson, executive vice president and CFO. "The repurchase
authorization our board approved continues a commitment to our
capital allocation policy."
The share repurchase program, which has no expiration date, will
be executed in accordance with applicable securities laws and
regulations and may be suspended or discontinued at any time at the
company's discretion.
Through the ASR program, GM will advance an aggregate of
$2 billion to the executing banks to
receive and retire GM common stock. The total number of shares
ultimately repurchased under the ASR program will be determined
upon final settlement and will be based on the average of the daily
volume-weighted average prices of GM's common stock during the term
of the program. The ASR program is expected to conclude in the
second quarter of 2025. The ASR program will be executed by
Barclays and J.P. Morgan.
Outside of the ASR program, GM will have $4.3 billion of capacity remaining under its
share repurchase authorizations for additional, opportunistic share
repurchases.
In 2024, GM's weighted average common shares outstanding was
1.055 billion, and as of Dec. 31,
2024, the company had less than 1 billion total shares
outstanding.
General Motors (NYSE:GM) is driving the future of
transportation, leveraging advanced technology to build safer,
smarter, and lower emission cars, trucks, and
SUVs. GM's Buick, Cadillac, Chevrolet,
and GMC brands offer a broad portfolio of
innovative gasoline-powered vehicles and the
industry's widest range of EVs, as we move
to an all-electric future. Learn more at GM.com.
Cautionary Note on Forward-Looking Statements:
This press release and related comments by management, may include
"forward-looking statements" within the meaning of the U.S. federal
securities laws. Future declarations of quarterly dividends and the
establishment of future record and payment dates, as well as
repurchases of shares, are at the discretion of our Board of
Directors and will be based on a number of factors, including our
future financial performance and other investment priorities.
Forward-looking statements are any statements other than statements
of historical fact. Forward-looking statements represent our
current judgment about possible future events and are often
identified by words like "aim," "anticipate," "appears,"
"approximately," "believe," "continue," "could," "designed,"
"effect," "estimate," "evaluate," "expect," "forecast," "goal,"
"initiative," "intend," "may," "objective," "outlook," "plan,"
"potential," "priorities," "project," "pursue," "seek," "should,"
"target," "when," "will," "would," or the negative of any of those
words or similar expressions. In making these statements, we rely
on assumptions and analysis based on our experience and perception
of historical trends, current conditions and expected future
developments as well as other factors we consider appropriate under
the circumstances. We believe these judgments are reasonable, but
these statements are not guarantees of any future events or
financial results, and our actual results may differ materially due
to a variety of important factors, many of which are beyond our
control. These factors, which may be revised or supplemented in
subsequent reports we file with the SEC, include, among others, the
following: (1) our ability to deliver new products, services,
technologies and customer experiences; (2) our ability to attract
and retain talented and highly skilled employees; (3) our ability
to timely fund and introduce new and improved vehicle models,
including electric vehicles (EVs); (4) our ability to profitably
deliver a strategic portfolio of EVs; (5) our long-term strategy is
dependent on consumer adoptions of EVs; (6) the success of our
current line of internal combustion engine vehicles; (7) our highly
competitive industry; (8) the unique technological, operational,
regulatory and competitive risks related to our announced plans to
refocus our AV strategy on personal vehicles; (9) risks associated
with climate change, including increased regulation of GHG
emissions, our transition to EVs; (10) global automobile market
sales volume; (11) inflationary pressures, persistently high
prices, uncertain availability of raw materials and commodities,
and instability in logistics and related costs; (12) our business
in China, which is subject to
unique operational, competitive, regulatory and economic risks;
(13) the success of our ongoing strategic business relationships
and of our joint ventures; (14) the international scale and
footprint of our operations, which exposes us to a variety of
unique political, economic, competitive and regulatory risks,
including the risk of changes in government leadership and laws,
political uncertainty or instability and economic tensions between
governments and changes in international trade policies; (15) any
significant disruption at any of our manufacturing facilities; (16)
the ability of our suppliers to deliver parts, systems and
components without disruption and at such times to allow us to meet
production schedules; (17) pandemics, epidemics, disease outbreaks
and other public health crises; (18) the possibility that
competitors may independently develop products and services similar
to ours, or that our intellectual property rights are not
sufficient to prevent competitors from developing or selling those
products or services; (19) our ability to manage risks related to
security breaches and other disruptions to our information
technology systems and networked products, including connected
vehicles; (20) our ability to manage security breaches and other
disruptions to our in-vehicle systems; (21) our ability to comply
with increasingly complex, restrictive and punitive regulations
relating to our enterprise data practices; (22) our ability to
comply with extensive laws, regulations and policies applicable to
our operations and products, including those relating to fuel
economy, emissions and AVs; (23) costs and risks associated with
litigation and government investigations; (24) the costs and effect
on our reputation of product safety recalls and alleged defects in products and services; (25) any
additional tax expense or exposure or failure to fully realize
available tax incentives; (26) our continued ability to develop
captive financing capability through General Motors Financial
Company, Inc.; and (27) any significant increase in our pension
funding requirements. A further list and description of these
risks, uncertainties and other factors can be found in our most
recent Annual Report on Form 10-K and our subsequent filings with
the SEC. We caution readers not to place undue reliance on
forward-looking statements. Forward-looking statements speak only
as of the date they are made, and we undertake no obligation to
update publicly or otherwise revise any forward-looking statements,
whether as a result of new information, future events or other
factors, except where we are expressly required to do so by
law.
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SOURCE General Motors
