GM Still Looks At Share Buyback while Expanding Maintenance Program

By IVCPOST Staff Reporter

Jun 06, 2013 11:32 PM EDT

On Thursday, General Motors Co expands a maintenance program to boost revenue. The program was initiated to make its US clients more loyal to its brands.

CEO Dan Akerson stated that Buick, GMC and Chevrolet clients in the US will be covered by the new program. It will include a two-year free scheduled service. GM estimates a boost of revenue by US$700 million after each percentage point increases in its owner loyalty rate.

Speaking at the US automaker's yearly shareholders meeting, Akerson added that the company would consider a share buyback or stock dividend. However, the current main focus is investing in new programs such as the above mentioned or in new vehicles.

Akerson separately told reporters that GM would continue to consider buyback and dividend to push through. He also cited GM's purchase of a block of the US Treasury shares last December. The purchase was priced at US$5.5 billion and that the automaker may retake a similar approach.  

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