Ford says it will buy back up to about 116 million shares of company stock worth about $1.8 billion.
The Dearborn based automaker says the buy-backs will help offset potential dilution from convertible debt and stock-based compensation for employees.
Those can increase the number of shares on the market and weigh on per-share earnings. By buying back its shares, Ford can help boost its earnings per share.
The price tag is based on Wednesday's closing price of $15.46 per share.
Ford Motor Co. shares rose nearly 1 percent to $15.60 in after-hours trading Wednesday. They closed down 10 cents at $15.46. The stock's value is nearly unchanged in 2014.