General Motors (GM) has offered a response to critics of its unsteady push into electric vehicles and self-driving: to shower shareholders with cash.
The automaker on Wednesday announced its biggest-ever stock buyback plan — $10 billion in total — as CEO Mary Barra promised better days are ahead. GM also boosted its dividend 33% and reinstated earnings guidance after accounting for the costs of its new labor contract.
The Detroit-based manufacturer is returning billions to investors despite high interest rates that are threatening car sales and capital burdens from its EV effort, which has yet to show significant results. GM is trying to prove it can generate huge amounts of cash while still investing in technology, hoping to lift a stock that trades lower today than when Barra took over in early 2014.