A sign is seen outside of General Motors Detroit- Hamtramck assembly plant in Detroit, Michigan. Image Credit: AFP

General Motors Co. authorized a new $6 billion share buyback plan and raised its dividend as the automaker said improving profitability in its electric vehicle operations allowed it to return cash to investors.

The company said it plans to 'opportunistically' buy its stock under the new program after completing a $10 billion accelerated share repurchase approved last November, according to a statement Tuesday. GM expects to exhaust the remaining $1.1 billion of the prior authorization by the end of this quarter.

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"We are very focused on the profitability of our ICE business, we're growing and improving the profitability of our EV business and deploying our capital efficiently. This allows us to continue returning cash to shareholders," the company said.

GM also raised its quarterly dividend 33 per cent to 12 cents a share.

The company's shares turned positive on the announcement, rising less than 1 per cent as of 7.20am before regular trading in New York.