LONDON (ShareCast) - (Sharecast News) - General Motors said on Monday that it was pulling its dividend and suspending its share buyback programme to preserve cash amid the Covid-19 pandemic.
The company said it has extended $3.6bn under its three-year revolving credit agreement to April 2022, to further strengthen its liquidity position. This "complements" the extension of the $2bn 364-day revolving credit agreement to April 2021 that was renewed earlier this month, it said.

In addition, it has suspended the quarterly cash dividend on its common stock, suspended its share buyback programme and taken other "significant" measures to preserve near-term available cash.

Chief financial officer Dhivya Suryadevara said: "We continue to enhance our liquidity to help navigate the uncertainties in the global market created by this pandemic. Fortifying our cash position and strengthening our balance sheet will position the company to create value for all our stakeholders through this cycle."

GM said it remains committed to its capital allocation framework, which is focused on reinvesting in the business at pre-tax 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.

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