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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.

We want this Buick Regal wagon rumor to be true

The car we know in the US as the Buick Regal is sold as a Vauxhall/ Opel Insignia in Europe, where it's offered in four-door sedan, five-door liftback, and wagon body styles. Call it a case of wanting what we can't have, but we like the last two body styles a lot. Based on a report from a Buick/ GMC dealer meeting in Austin, one of them could be coming to the US soon. According to a poster identified as 97GreenRS on the forums at GM Inside News, GM showed dealers the 2018 Buick Enclave, Regal, and Regal GS, as well as the 2018 GMC Terrain, and then confirmed it would offer the Regal wagon here in the US. While that wouldn't normally be all that much to go on, we know Buick has been toying with the idea of a wagon for some time. A Regal-badged wagon was spotted way back in 2011. More recently, we reported on a trademark filing for "Tourx" and "Regal Tourx," which suggest a long roof (Tour) and all-wheel drive (x). If the Regal wagon arrives alongside the base sedan and GS as a 2018 model, we'd expect a debut within the next 15 or so months. That would place it right at the beginning of the 2017 auto show season, which starts next September in Frankfurt, Germany. With that in mind, it seems possible the new Regal would debut first as an Opel Insignia before appearing at a US show like Los Angeles or Detroit, although there's a lot of speculation going on there. We just want to see "Buick" and "wagon" in the same sentence again. Related Video:

KBB 2013 Brand Image Awards has some obvious and oddball winners

The sixth edition of the Kelley Blue Book Brand Image Awards have crowned a wide range of winners - in a couple of cases the recipient of the laurels might say more about KBB users than they do about the actual winner. Compiled from the responses of more than 12,000 shoppers on KBB.com over the past year, there are 13 categories broken into non-luxury, luxury and truck segments "representing the combined wisdom of the American car-buying public."
The award categories have been revamped this year, with some dropping off, some new ones appearing and at least one other given a new term. What isn't surprising is that Honda won Most Trusted Brand for the second year running, Best Value Brand for the third year in a row and took Best Overall Brand, which wasn't on last year's list of awards.
On our own shores, in the non-luxury categories Chrysler got Most Refined Brand and Buick took Best Value Luxury Brand. Neither one of those marques won anything in last year's Brand Image Awards, while Cadillac, which won Best Interior Design Brand and Best Comfort Brand last year - those awards disappeared this year - went home without a single accolade.