BMW (BMWG.DE), a German automaker, announced on Thursday that the start of a share repurchase program with a maximum volume of 2 billion euros ($2.08 billion) had been approved. The program is scheduled to begin in July.
1.85 billion euros, or over half of the total, are assigned to ordinary shares, with the remaining portion going to preferred shares.
According to BMW, the initiative will be finished no later than December 31, 2023. BMW said that more information would be released prior to the program’s scheduled start date.
The head of BMW’s manufacturing said the company is considering new investments in geothermal, solar, and hydrogen energy to lessen its dependency on natural gas. He also cautioned that a Russian gas embargo would put a stop to the industry.
In addition to considering installing solar panels at its facilities, the carmaker, which will rely on natural gas for 54% of its energy needs in 2021, is coordinating with local authorities to develop plans for the transportation of hydrogen to its Leipzig production.
Hydrogen is perfectly suited to lessen or perhaps entirely make up for gas consumption, according to Milan Nedeljkovic.
He said, “Our industry accounts for around 37% of German natural gas usage,” when asked what would happen to BMW’s operations if the Russian gas supply were cut off. The entire industry would come to a standstill, not just BMW.
The plans by BMW are a part of wider efforts by the German gas sector to transition away from Russian gas and come up with a mechanism to restrict supply in the event of a supply outage.