(Reuters) -General Motors ( GM ) on Tuesday announced a new $6 billion share buyback plan, just over a month after the automaker raised its dividend on upbeat annual forecast, citing stable prices and demand for gasoline-engine vehicles.

The company had in November outlined a $10 billion stock buyback on the heels of reaching a costly new labor agreement with the United Auto Workers union.

GM completed the first tranche in the first quarter and is on track to reduce its outstanding share count to under 1 billion. Its market capitalization was $54 billion as of latest close, as per LSEG data.

GM had in April raised its dividend by 33% to 12 cents per share. Its shares were up 1% in premarket trading.

(Reporting by Ananta Agarwal in Bengaluru; Editing by Arun Koyyur)