GM Cuts Dividend, Share Buybacks

General Motors Co. GM announced Monday that it is suspending the quarterly cash dividend on its common stock and suspending its share repurchase program to preserve near-term available cash due to the coronavirus pandemic.

The company said it has extended$3.6 billion under its three-year revolving credit agreement to April 2022 to further strengthen its liquidity position.

This complements the extension of the $2-billion, 364-day revolving credit agreement to April 2021 that GM and GM Financial renewed earlier this month.

"We continue to enhance our liquidity to help navigate the uncertainties in the global market created by this pandemic," CFO Dhivya Suryadevara said in a statement.

"Fortifying our cash position and strengthening our balance sheet will position the company to create value for all our stakeholders through this cycle."

GM shares were trading down 1.16% at $21.70 at the time of publication Monday. The stock has a 52-week high of $41.90 and a 52-week low of $14.32.

Related Links:

General Motors Reports Mixed Q4 Earnings

Workhorse Group Trades Higher Despite Weak Q3 Sales