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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.

GM cutting production at two plants

General Motors is continuing to adjust to excess supply of some of its brands' models. To get production more in line with the vehicles' actual demand, the automotive giant is idling two of its factories in North America in the coming months. The Orion Assembly plant is going to be down from March 9-13, according to an anonymous plant worker and another insider speaking to Automotive News. The factory builds the Chevrolet Sonic and Buick Verano, but there are plenty of both models sitting on dealer lots, including 216 days worth of Sonics, according to AN. The factory already had two idle periods announced to reduce the excess. In addition, downtime is scheduled at GM's "Flex" line at the Oshawa, Ontario, Canada, plant from April 13-17. This affects supply of the Chevrolet Camaro, Impala, Buick Regal and Cadillac XTS. Among them, the automotive giant has the largest supply of Regals ready for dealers with 213 days worth of them, according to AN. The future for the whole Oshawa factory is cloudy in general, though. There are rumors that it could close entirely in the future because the Camaro is leaving and the Regal and XTS might not last much longer than 2017. The Canadian government and the labor union there intend to put up a fight, though. News Source: Automotive News - sub. req.Image Credit: Bill Pugliano / Getty Images Plants/Manufacturing Buick Cadillac Chevrolet GM orion assembly oshawa plant idle

China-market Buick Envista rumored possible replacement for the Encore

Buick currently sells four crossovers, the Encore, Encore GX, Envision, and Enclave. That number will soon be whittled to three, the Encore expected to end production after this model year. If speculation provided by GM Authority is correct, there could be changes afoot in the middle of the line in time for the 2024 model year. Buick has said it will maintain four ICE-powered crossovers, so the brand will need something to fill the coming gap. GMA sources suggest the China-market Buick Envista could get the nod. Buick launched the coupe-esque model across the Pacific in August, a relation to the Chevrolet Seeker that appeared on the Chinese market in April. The Envista debuted the brand's latest design language inspired by pure-electric concepts like the Electra-X and WIldcat. Thin, angled headlights frame a wide, low grille, leading back to a roof that slopes into a high back and double spoilers. GM applied to trademark the Envista name in the U.S. in early 2019, then maintained it with extension requests until earlier this year. Then, in September 2022, the automaker abandoned the application, which could bode ill for whatever chance there was, if any. Another snag could be that the Envista is 182.5 inches long, 71.5 inches wide, and 61.6 inches high on a 106.3-inch wheelbase. Various reports have pitched the Envista to fill the (small) space between the Encore GX and the Envision; however, the Envista falls just 0.10 short of the Envision's length, and it's three inches smaller in every other dimension. On the other hand, the Envista is 11.1 inches longer and 0.1 inch wider than the Encore GX, with a wheelbase 4.1 inches longer. That makes a lot of overlap in the dimensional Venn diagram. Were the Envista to come as-is, it wouldn't so much be a replacement for the Encore as be a different kind of compact SUV from the Envision on a more modern platform. Further speculation from "sources familiar with the matter" says a U.S.-market Envista could get the Avenir treatment. Avenir marks the ultimate in Buick luxury, an appellation currently restricted to the Envision and Enclave. According to a separate report, the Encore GX is also headed into the Avenir club with the compact crossover gets refreshed for the 2024 model year. An Encore GX Avenir would adopt some exterior tweaks like 18-inch alloys, and turn a load of optional equipment available for the Encore GX Essence trim into standard equipment. Related video: