General Motors suspends quarterly dividend, share repurchase program

General Motors has extended $3.6B under its three-year revolving credit agreement to April 2022, to further strengthen its liquidity position. This complements the extension of the $2B 364-day revolving credit agreement to April 2021 that GM and GM Financial renewed earlier this month. In addition, the company has suspended the quarterly cash dividend on its common stock, suspended its share repurchase program and has taken other significant austerity measures to preserve near-term available cash. “We continue to enhance our liquidity to help navigate the uncertainties in the global market created by this pandemic,” said GM CFO, Dhivya Suryadevara. “Fortifying our cash position and strengthening our balance sheet will position the company to create value for all our stakeholders through this cycle.” GM remains committed to its capital allocation framework, which is focused on reinvesting in the business at pretax returns equal to or greater than 20%; maintaining a strong investment-grade balance sheet; and returning capital to shareholders after the first two objectives have been met.