General Motors will suspend quarterly dividends and stock buybacks as well as extend a $3.6bn revolving credit facility in order to bolster its cash position during the COVID-19 pandemic.

GM will extend its $3.6bn three-year revolving credit agreement to April 2022, a step that complements the extension of the $2 billion 364-day revolving credit agreement to April 2021 that GM and GM Financial renewed earlier this month. GM also announced that it has suspended the quarterly cash dividend on its common stock, suspended its share repurchase program and has taken other significant austerity measures to preserve near-term available cash.

"We continue to enhance our liquidity to help navigate the uncertainties in the global market created by this pandemic," said GM Chief Financial Officer, Dhivya Suryadevara. "Fortifying our cash position and strengthening our balance sheet will position the company to create value for all our stakeholders through this cycle."

GM said it remains committed to its capital allocation framework, which is focused on reinvesting in the business at pretax returns equal to or greater than 20 percent; maintaining a strong investment-grade balance sheet; and returning capital to shareholders after the first two objectives have been met.

GM factories in North America remain closed, but the company is hoping to restart operations midway through May.