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GM approves new $6B stock buyback on strong demand for gas-powered vehicles

General Motors Co said on Tuesday its board of directors has authorized a new share repurchase program to buy back up to $6 billion of the company’s common stock, a month after the company’s first-quarter results beat Wall Street expectations on strong demand for gasoline-powered vehicles.

GM said Tuesday it would buy back up to an additional $6 billion of its own stock. (Reuters/Rebecca Cook/Reuters Photo)

“We are extremely focused on the profitability of ICE. [internal combustion engine] Businesses are making EVs more profitable and growing [electric vehicle] “This is in support of our business growth and efficient allocation of capital,” GM executive vice president and chief financial officer Paul Jacobson said in a statement announcing the move. “This will enable us to continue returning cash to our shareholders.”

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GM announced $10 billion in stock repurchases in November and said Tuesday it has about $1.4 billion of capacity remaining under those commitments. The company plans to buy back $300 million of its stock in the first quarter and the remaining $1.1 billion by the end of the second quarter.

GMC Chevrolet Pickup Truck

A Chevrolet pickup truck parks in a parking lot outside GM’s Fort Wayne Assembly Plant in Roanoke, Indiana, on May 30, 2019. GM raised its full-year forecast after strong first-quarter sales of gasoline-powered trucks. (Photo by Joshua Lott/Getty Images/Getty Images)

The Detroit automaker did not give a deadline for its latest share buyback but said the move would allow it to “opportunistically repurchase shares” after existing plans are completed.

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Shares of the company, which has a market capitalization of about $54 billion, rose 1.8% at the open and have risen about 50% since GM announced a $10 billion share repurchase plan in late November.

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GM General Motors 48.58 +1.00 +2.10%

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The company raised its dividend by 33% to 12 cents a share in January.

Reuters contributed to this report.