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Cramer on GM: 'I’m shocked' by the new buyback

Cramer on GM buyback: 'I'm shocked at this'

General Motors' new $5 billion stock buyback is a stunning move and suggests that CEO Mary Barra may be more optimistic than people had assumed, CNBC's Jim Cramer said Monday.

"I'm shocked at this," Cramer said on CNBC's "Squawk on the Street. " "You know that Mary Barra had been saying, 'Look, we need all the money we can get because we have a downturn.'"

Cramer made his remarks after GM announced the buyback program before the opening bell. The company also said it would return nearly $10 billion to shareholders through 2016, and that the move would increase its quarterly dividend by 6 cents to 36. The buyback also brings the company's buyback to about $20 billion.

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Cramer said the buyback shows the company is bullish on vehicle sales in Europe. "I don't what it says about Latin America, though," he said.

Shares of GM traded at about $37, up more than 3 percent, on Monday morning. Click here to see what the stock is doing now.

DISCLOSURE: Cramer's family trust owned GM stock at the time this article was published.