General Motors Company (GM.US) announced a new round of stock repurchases and increased its quarterly dividend by 25%.

Notice that General Motors Company (GM.US) plans to reward investors through a $6 billion stock buyback and an increase in dividends. As of the time of writing, the company's stock price has risen by 4.4% in pre-market trading. This announcement comes as the automotive industry faces uncertainty due to policy changes under President Trump's leadership, including threats of tariffs and a commitment to reduce support for electric vehicles. "We are confident in our business plan, and our balance sheet remains strong. We will be flexible in responding to changes in public policy," said Chief Financial Officer Paul Jacobson in a statement. General Motors Company stated that the buyback has no expiration date, but plans to complete the initial $2 billion buyback before the end of the second quarter. The company will also raise its quarterly dividend by 3 cents to 15 cents per share. This is the latest in a series of significant stock buyback actions by the company. In 2021, General Motors Company had 14.5 billion outstanding shares, but currently has less than 10 billion shares publicly traded. General Motors Company approved a $6 billion stock buyback plan in June last year, with $3 billion remaining unused. Previously, the company completed a $10 billion buyback plan in November 2023. Since 2015, including the latest buyback, the General Motors Company board has approved a total of $37.7 billion in buyback plans. This has helped boost General Motors Company's stock price, despite recent setbacks to its business plans and strategies. The company can afford these expenditures without impacting its stable capital expenditure program, based on adjusted 2025 free cash flow targets of $11 to $13 billion. The company has not chosen to invest cash into new ventures or use it as a buffer against any negative impacts from White House policy changes. Trump proposed imposing a 25% tariff on Mexico and Canada, where General Motors Company has five assembly plants combined, and is also impacted by a highly integrated North American automotive parts supply chain. Trump also instructed General Motors Company to consider rolling back policies favorable to electric vehicles, which could pose short-term risks to the company's investments in plug-in vehicles.