(Bloomberg) -- Mercedes-Benz Group AG plans to buy back as much as €3 billion ($3.2 billion) worth of stock, extending moves to reward shareholders after cash flow exceeded expectations.

The German luxury-car maker said the new buyback will begin immediately after the conclusion of an ongoing program, worth €4 billion. That repurchase — at the time the first in 15 years — was unveiled about a year ago.

Carmakers have returned more money to shareholders in recent months after benefiting from pent-up demand after years of supply-chain disruptions. General Motors, Ford and Stellantis spent a combined $22.7 billion buying back shares and paying dividends last year, while Renault last week proposed its biggest shareholder payout in five years.

Read More: Detroit Splurges on Shareholders as Tesla Pulls Away

Mercedes’ American depositary receipts rose 3.3% after the new round of repurchases was announced late Wednesday. The company reported better-than-expected preliminary industrial free cash flow earlier this month, raising some expectations for an extension to its share buyback program.

Like its peers, Mercedes long benefited from a well-filled order book that helped offset some of the economic headwinds affecting the automotive industry. Sales are expected to normalize this year as higher living and borrowing costs weigh on consumption. The manufacturer also is contending with waning enthusiasm for electric vehicles in Europe and pressure from Tesla Inc.’s frequent price cuts.

The company is due to provide a full earnings report Thursday.

(Updates with 2024 industry challenges in fifth paragraph.)

©2024 Bloomberg L.P.