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GM suspends dividend, bolsters cash position | Automotive Industry News

Typical Motors will suspend quarterly dividends and stock buybacks as properly as extend a $three.6bn revolving credit history facility in buy to bolster its hard cash placement through the COVID-19 pandemic.

GM will extend its $three.6bn a few-12 months revolving credit history agreement to April 2022, a stage that enhances the extension of the $two billion 364-day revolving credit history agreement to April 2021 that GM and GM Economic renewed earlier this month. GM also declared that it has suspended the quarterly hard cash dividend on its frequent stock, suspended its share repurchase plan and has taken other important austerity measures to protect in the vicinity of-expression readily available hard cash.

“We continue to enrich our liquidity to assistance navigate the uncertainties in the global market established by this pandemic,” mentioned GM Chief Economic Officer, Dhivya Suryadevara. “Fortifying our hard cash placement and strengthening our stability sheet will placement the enterprise to create benefit for all our stakeholders through this cycle.”

GM mentioned it continues to be committed to its capital allocation framework, which is targeted on reinvesting in the company at pretax returns equivalent to or greater than twenty per cent retaining a solid investment decision-grade stability sheet and returning capital to shareholders right after the 1st two targets have been fulfilled.

GM factories in North The usa keep on being shut, but the enterprise is hoping to restart functions midway through May well.