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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.
|GM||GENERAL MOTORS CO.||57.36||+0.53||+0.94%|
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.
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.
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.