GM announced on Monday that it is launching the buy-back program in order to fend off investor Harry Wilson. Wilson announced in February his intent to land a seat on GM’s board of directors and launch a stock repurchase program that would stretch to $8 billion by 2016.
“As we continue to execute on our plan to become the most valued automotive company, our track record of improved operating performance, strong earnings momentum, and disciplined capital investments provide the foundation for a comprehensive capital allocation framework,” said GM CEO Mary Barra. “We will continue to invest in innovative technologies and world-class vehicles that will deliver sustained profitable growth and maximize returns to shareholders.”
In the statement GM also outlined plans to build it cash balance to $20 billion while returning “all available free cash flow to shareholders.” In 2015 GM will invest $9 billion into its future growth, which will cover a more aggressive launch cadence in the coming years.
GM’s stock was trading about 2.5 percent higher following the announcement.
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