FOX Business’ Cheryl Casone breaks down what topics are trending on FOX Business.
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General Motors Co. said it has suspended its quarterly cash dividend and share-buyback program as it seeks to conserve cash amid the coronavirus pandemic.
The auto maker on Monday also said it extended $3.6 billion under its three-year revolving credit agreement to April 2022. The company previously extended its $2 billion 364-day agreement to April 2021.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS COMPANY | 21.95 | +0.43 | +2.00% |
GM said it would still reinvest pretax returns equal to or more than 20% into its business and focus on maintaining an investment-grade balance sheet. Its capital allocation framework calls for returning capital to shareholders after those two goals are met.
GM RECALLING SOME WORKERS ‘SOON’ TO PREP CORONAVIRUS RESTART
Major car companies have reported a drop in sales for the first three months of the year as the pandemic spread across continents. GM earlier this month reported a 7% decline in U.S. sales for the first quarter, saying strong results in January and February were more than offset by the effect of the health crisis in March, when Covid-19 cases in the U.S. shot up and shelter-in-place measures escalated.
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The auto industry has stepped up to convert plants into medical-supply factories as U.S. hospitals face shortages. GM earlier this month said it was making 30,000 ventilators for the national stockpile in a $489.4 million contract with the Department of Health and Human Services, while Ford Motor Co. said it was working to make 50,000 ventilators by early July.
