GM Unlikely to Resume Dividend This Year

CEO Dan Akerson tells Bloomberg Radio that General Motors Co. doesn't plan to pay a dividend to shareholders this year.

In an interview scheduled to air next month, Akerson says GM will wait until the U.S. Dept. of the Treasury completes its divesture of the company's common stock before reassessing its plans to resume dividends. The Treasury Dept. has said it aims complete the sale of its remaining GM shares by March 31, 2014.

Akerson reiterates that the company's top priority is to build a "fortress balance sheet" that combines low debt with strong assets and cash flow. GM aims to funnel its cash flow into product development before distributing the excess to shareholders.

Resuming dividend payments would expand the pool of potential investors in GM to include the large number pension plans and other institutional investors that are restricted to buying dividend-paying stocks.