General Motors suspends dividend, stock buybacks to preserve cash

GM announced the second major expansion of its full-size pickup production capacity this year: with a $150 million investment at Flint Assembly to increase production of the all-new Chevrolet Silverado and GMC Sierra heavy-duty pickups.

JEFF KOWALSKY | AFP | Getty Images

General Motors said Monday that it is suspending its quarterly dividend and stock buybacks to preserve cash during the coronavirus pandemic.

The automaker said it also extended a $3.6 billion, three-year revolving credit facility to April 2022 to help bolster its liquidity. GM said it’s “taken other significant austerity measures to preserve near-term available cash.”

GM’s U.S. plants have been shuttered since mid-March due to Covid-19. The automaker along with Ford Motor and Fiat Chrysler are in discussions with the United Auto Workers union to reopen the plants, however union leaders last week said that they oppose an early-May restart, which several automakers have announced.

GM and Ford are among the only major automakers that have yet to announce a time frame to restart production. Fiat Chrysler earlier this month announced plans to restart production on May 4.

This is breaking news. Please check back for updates.

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