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Frustrated GM investors ask what more Mary Barra can do

DETROIT — General Motors Co Chief Executive Mary Barra has transformed the No. 1 U.S. automaker in her almost five years in charge, but that is still not enough to satisfy investors. Ahead of third-quarter results due on Oct. 31, GM shares are trading about 6 percent below the $33 per share price at which they launched in 2010 in a post-bankruptcy initial public offering. The Detroit carmaker's stock is down 22 percent since Barra took over in January 2014. After hitting an all-time high of $46.48 on Oct. 24, 2017, the shares have declined 33 percent. In the same period, the Standard & Poor's 500 index has climbed 7.8 percent. Several shareholders contacted by Reuters said GM could face a third major action by activist shareholders in less than four years if the share price does not improve. "I've been expecting it," said John Levin, chairman of Levin Capital Strategies. "It just seems a tempting morsel to somebody." Levin's firm owns more than seven million GM shares. Barra has guided the company through the settlement of a federal criminal probe of a mishandled safety recall, sold off money-losing European operations, and returned $25 billion to shareholders through dividends and stock buybacks from 2012 through 2017. GM declined to comment for this story, but the company's executives privately express frustration with the market's reluctance to see it as anything more than a manufacturer tied mainly to auto market sales cycles. GM's profitable North American truck and SUV business and its money-making China operations are valued at just $14 billion, excluding the value of GM's stake in its $14.6 billion Cruise automated vehicle business and its cash reserves from its $44 billion market capitalization. The recent slump in the Chinese market, GM's largest, and plateauing U.S. demand are ratcheting up the pressure. GM is one of the few global automakers without a founding family or a government to serve as a bulwark against corporate raiders. In 2015, a group led by investor Harry Wilson pressed GM to launch a $5 billion share buyback, and commit to what is now an $18 billion ceiling on the level of cash the company would hold. In 2017, GM fended off a call by hedge fund manager David Einhorn to split its common stock shares into two classes. Einhorn, whose firm still owned more than 21 million shares at the end of June, declined to comment about GM's stock price. Other investors said there were no clear alternatives to Barra's approach.

Buick envisioning a refreshed Envision crossover

Buick's first fully Chinese-built vehicle in the U.S., the Envision crossover, is now getting its very first refresh. Cars grow up so fast, don't they? There's no time to be wistful, though, so we need to take a look at this prototype. It looks like the Envision refresh is going to be very mild and focuses on strengthening the family resemblance between it and other Buicks. The waterfall grille now has a horizontal bar that intersects with the badge, as seen on every new and updated Buick since the latest LaCrosse. And although that badge is covered, we wouldn't be surprised if it changes from the all-silver design to the classic red, white and blue version that was reintroduced on the LaCrosse. The lower grilles have been changed, too. The outboard grilles that house the fog lights look smaller and less pronounced than on the current model, and the center piece appears to be thinner and wider. It also more naturally merges into the plastic air dam. The tail of this Envision, though more heavily camouflaged, also shows some minor updates. The most significant of them are the new taillights. They appear to have a similar boomerang shape as those on the LaCrosse, a distinct change from the ovular units of the current model. The lower edge of the bumper seems to have more of a faux diffuser look, and the exhaust tips now blend into the shape of the bumper, rather than ending in simple round shapes. Since this update is clearly a mild one, we would expect to see the new Envision on sale sometime next year, probably as a 2019 model. It will join a rather fresh Buick lineup alongside the new Regal and Enclave. Related Video: Featured Gallery 2019 Buick Envision Spy Shots View 11 Photos Image Credit: KGP Photography Spy Photos Buick Crossover Luxury buick envision

Texas sues GM, saying it tricked customers into sharing driving data sold to insurers

Texas filed a lawsuit Tuesday against GM over years of alleged abuse of customers' data and trust. New car owners were presented with a "confusing and highly misleading" process that was implied to be for their safety, but "was no more than a deceptively designed sales flow" that surrendered their data for GM to sell. The suit contends that at no point was selling driving data ever even suggested as a possibility, putting GM in violation of the state's consumer protection laws. Texas Attorney General Ken Paxton is seeking a jury trial and at least $10,000 per offense (every GM car sold in the state since 2015) and a hefty add-on of $250,000 in cases where the victim was over 65. Texas seems to be flying high after a recent $1.4 billion settlement from Meta over other privacy concerns. This may well be a way to solve any pending budgetary issues in the Lone Star State.