General Motors Company (NYSE:GM) has announced that it will spend $1.1 million on a share offering, although it doesn’t yet plan to offer a dividend. That’s according to a Thursday filing with the Securities and Exchange Commission.
Details On General Motors’ Share Offering
Fox Business’ Matthew Rocco reports that GM will offer 50 million shares which will be generated from the stakes currently owned by the U.S. Treasury and VEBA. General Motors Company (NYSE:GM) CEO Dan Akerson said that the company’s goal in the near term is to earn an investment-grade credit rating. He also said Americans were “well served” through the bailout of the automaker and that GM will continue to invest in new facilities and products.
General Motors’ Expanded Maintenance Program
In addition to the share offering, GM said it would expand its two-year maintenance program which covers most of its vehicles. The automaker is attempting to push customer loyalty while also building up some excitement for its new Chevrolet vehicles.
Under the program expansion, General Motors Company (NYSE:GM) will now cover 2014 Chevrolet, GMC or Buick models either leased or bought since May. It covers free scheduled maintenance for things like oil changes and tire rotation for 24,000 miles or two years, whichever comes first.
The maintenance program had already been announced for GM’s Chevy Silverado and GMC Sierra trucks. Cadillac’s program is four years and offered separately.
GM has been battling falling U.S. market share in recent years, so it has been refreshing many of the vehicles in its portfolios in an attempt to bring U.S. auto owners back to its products.
Free OnStar RemoteLink Service
Separately, OnStar is offering free RemoteLink service for five years for GM vehicles. The service enables drivers to both lock and unlock their vehicles and even start their engines through their smartphones.
Shares of General Motors Company (NYSE:GM) rose 1.23 percent in regular trading on Thursday.
Update 14:50 EST: Headline Corrected