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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.

Chevy Volt, Nissan Leaf sales show big drops in September

As most readers likely know, it's not just lower gas prices that are affecting plug-in vehicle sales. The two long-time sales leaders in the US - the Nissan Leaf and the Chevy Volt - are getting long in the tooth. First introduced in late 2010, the vehicles have been updated here and there since then, but recent sales figures have been lagging behind where they were in 2014. This trend continued in September, with sales of both vehicles down in a big way compared to last year. Sales of Nissan Leaf totaled 1,247 for the month of September. This is down a whopping 56.7 percent from September 2014, but thankfully the year-to-date sales are not quite as negative. So far this year, Nissan has sold 13,630 Leafs, which is "just" 37.5 percent lower tan the YTD total at this point in 2014 (21,822). This decrease swims against the overall direction of Nissan's September sales, which were up 18 percent over last year and set a new September record. The Volt sold 949 units last month, down 31.9 percent from last September. Year to date, the Volt has sold 9,264 units, which is 36.3 percent lower than the number of Volts that were sold in the first nine months of 2014 (14,540). This downward trend might be coming to an end soon. The new Chevy Volt will go on sale in 11 US states later this fall, and the 2017 model will be available nationwide next spring. An updated Leaf for the 2016 model year also offers more miles – 107, vs 84 in the 2015 version – so potential customers who have been waiting for the latest and greatest will soon not have any excuses. We'll have our broader look at green car sales in the US up soon. Green Chevrolet Nissan Electric Hybrid ev sales hybrid sales volt

2015 Chevy Silverado, GMC Sierra recalled for steering issues

DETROIT — General Motors Co is recalling more than 1 million pickup trucks and sport utility vehicles in the United States due to issues with a temporary loss of power steering, the National Highway Traffic Safety Administration said. The recall is for 2015 models. They are: the Chevy Silverado 1500, Suburban and Tahoe, GMC Sierra 1500, Yukon and Yukon XL and Cadillac Escalade. The problem may cause difficulty steering the vehicle, especially at low speeds, increasing the risk of a crash, the auto safety regulator said in a document dated Sept. 12. The document did not highlight any reports of accidents and injuries, because of the power steering issue. GM dealers will update the power steering module software, free of charge for owners of the affected vehicles. In 2014, the No.1 U.S. automaker had recalled nearly 800,000 pickup trucks worldwide because of the same problem. GM did not immediately respond to a request for comment.Related Video: