BMW shares soared Wednesday after new financial news and new cars.
The Munich, Germany-based automaker said it will start to buy back shares from companies that do not meet certain benchmarks for performance in 2018, including companies that are “unprofitable.”
BMW shares are up almost 6% at the time of this report.
The company said it plans to buy up to 5% of shares sold by certain non-performing companies and expects to spend more than $1.6 billion to buy shares.
The news comes a day after BMW reported a record loss of $2.2 billion in the year to March 31.
The automaker had reported an operating profit of $1 billion in 2016.
The stock has soared in recent months, rising from $6.20 to $17.90 earlier this week.
But its shares have slipped as a result of concerns over the quality of BMW’s supply chain.
The brand has struggled to stay afloat amid the fallout from the automaker’s diesel scandal and the company’s continued troubles with suppliers including suppliers of electric cars.
Last week, the automakas chief executive resigned amid mounting criticism of the companys supply chain and the lack of transparency with suppliers.