Posted on 04/27/2020 6:11:58 AM PDT by dynachrome
GM is suspending its quarterly dividend and stock buybacks to preserve cash during the coronavirus pandemic. The automaker said it also extended a $3.6 billion, three-year revolving credit facility to April 2022 to help bolster its liquidity. GM’s U.S. plants have been shuttered since mid-March due to Covid-19.
union leaders said last week they oppose an early-May restart, which several automakers have announced.
(Excerpt) Read more at cnbc.com ...
The government.
Here we go again with Garbage Motors. They’ll soon have their hat in hand on the steps of the Capitol. You don’t need to improve the quality of your junk when you can just get a bailout when times are tough. “See the service bay in your Chevrolet”.
The U.S. government will buy them — even if it means shipping them to rural villages in Afghanistan where they don’t even have gasoline.
News of dividend halts/cuts by big companies will soon become daily stories. And lots of retirees depend on them. Just saying.
And probably send them to the crusher. Like FDR did with cattle during the depression.
“rural villages in Afghanistan’
I picture a $70,000 truck being pulled by a couple of donkeys.
Whoops, stopping dividends will not stop folks from bailing out of GM Stocks. This means more of the company stocks will be out of company hands - Not Good.
Still run by Government Bureaucrats?
Trump will be coming out with yet another stimulus to buy Americans new cars! Woo Hoo!
Who says socialism doesn’t work!
Dinar Shore would be depressed.
The first in a long list of companies to cut or eliminate dividends. Thanks Democrats and the media for panicking everyone.
Bump
“ I believe there are a large amount of unsold autos/trucks out there. Who will buy them if there are no jobs?”
*******
Yeh, for sure. I’m guessing after folks go back to work and the 2021 trucks start showing up at dealerships there’s going to be some serious price wars between Ford, GM and Ram. I’m saving my nickels and dimes till the end of the year as I’m guessing any 2020’s still on lots will be going less than factory invoice and 2021’s less than dealer invoice. Prices may be even lower than I’ve stated as the name of the game will be to generate revenue flow and protect market share. Should be interesting on the buyer side for sure.
If no one can or will pay that amount, it’s not a $70,000 truck.
I’m not a CFO of a public company, but it seems stock buy backs are one of the stupidest, most corrupt management tools I have seen. The main purpose, as far as I can tell, is to allow management to manipulate earnings per share, and goose their own compensation.
If you have extra money to return to shareholders, declare dividends.
Cash for dumbcklers
Yeah, but that would help save the planet from global warming (as long as the donkeys don't fart).
the GM UAW stole my retirement money.
To hell with GM and the black thief rat Barack Obama
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