• Tue. May 11th, 2021

General Motors Takes Additional Steps to Fortify Balance Sheet

General Motors Takes Additional Steps to Fortify Balance Sheet

DETROIT, MI (STL.News) General Motors Co. (NYSE:GM) 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.  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 Chief Financial Officer, 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 percent; maintaining a strong investment-grade balance sheet; and returning capital to shareholders after the first two objectives have been met.

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Marty Smith

Marty Smith

Marty Smith is the acting Editor in Chief as well as the founder of STL.News, DirectSourceNews.org, and St. Louis Restaurant Review. Additionally, Smith is the IT Manager responsible for STL.News and affiliate sites. Smith has created multiple aggregator sites to manage the large amount of content used to select which content to published on STL.News. As Editor in Chief, Smith is responsible for the content posted on the network with the help of the publishing team, which is located around the globe.