GM may consider divided payment in 2014, says CEO

Article by Christian A., on December 18, 2013

General Motors Co. is in a better position to consider a dividend payment in 2014, thanks to improved cash flow and fewer outstanding preferred shares, according to outgoing chief executive Dan Akerson. “We’re producing a fair amount of cash now, too, and we’ve improved our balance sheet by buying back yield-based securities, so I think it does give us more bandwidth to consider it,” Akerson told reporters following a presentation at the National Press Club in Washington D.C.

Harry J. Wilson, a member of the United States auto task force that helped rebuild GM in its 2009 bankruptcy, has remarked that activist investors may press for more dividend payouts or stock buybacks.

Akerson's remarks came after GM disclosed plans to invest $1.3 billion to upgrade five factories in the US, on top of the $1.5 billion already announced this year. The new plan also came following a disclosure that the U.S. Treasury had sold its remaining stake in GM, thereby totally freeing the carmaker from US government ownership.

Akerson also disclosed that he will retire in January 2014, with Mary Barra succeeding him. Akerson has recently been very active in continuing efforts to further build GM. In September, GM announced an effort to buy around half of the UAW retiree health-care trust’s preferred shares that paid a 9-percent annual interest, replacing it with a bond offering. GM also introduced 18 new or revamped models in the US this year, with plans for 14 more introductions in 2014.

Topics: gm, ceo

If you liked the article, share on:

Comments

Recommended

A lot of us know Singer Vehicle Design and their signature work of reimagining Porsche 911s, and making them look like hot rods from the 70s. They are not alone...
by - August 20, 2017
August 17, 2017 is a sad day for the Dodge Viper, its fans, enthusiasts and its admirers. It is the day when the last Dodge Viper rolled off the assembly...
by - August 20, 2017
A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries