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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.

Malcolm Butler gets the MVP's Chevy Colorado

In the wake of the Super Bowl last week, we reported that New England Patriots quarterback Tom Brady intended to give the Chevy Colorado awarded to him as the game's most valuable player to Malcolm Butler instead. In our informal poll (to say nothing of the hundred-plus comments that ensued), an overwhelming 86.7 percent of you, our loyal readers, agreed that it was the right thing to do. And now that's precisely what's happened. "After consulting Super Bowl MVP Tom Brady," the automaker said in the press release below, "Chevrolet presented an all-new Colorado pickup to New England Patriots cornerback Malcolm Butler." The rookie, as you may have seen in between the commercials, made the game-saving interception that handed his team the victory, propelling Butler to stardom. "I am ecstatic that Chevrolet has chosen to reward me with a Colorado," said Butler upon taking delivery of his new red pickup. "It is just another unreal event in what has been an incredible week." We can only imagine. Enjoy the truck, Malcolm; you've earned it. Related Video: Upon Further Review, Chevrolet Awards Super Bowl MVP Colorado to Malcolm Butler 2015-02-10 DETROIT – After consulting Super Bowl MVP Tom Brady, Chevrolet presented an all-new Colorado pickup to New England Patriots cornerback Malcolm Butler, whose end zone interception preserved the Patriots' victory in Super Bowl XLIX. The Colorado was intended to be awarded to Brady, the Patriots' quarterback, in recognition of his Super Bowl Most Valuable Player award. However, Brady and Chevrolet huddled on Monday and Chevrolet determined Butler deserved recognition for his game-saving interception. "I've seen several game-changing moments in big games, and Malcom's interception last Sunday ranks up there as one of the biggest," said Brady. "I appreciate Chevrolet wanting to honor the Super Bowl's top performer, and I'm glad they have agreed to award the Colorado to Malcolm." Said Butler: "I am ecstatic that Chevrolet has chosen to reward me with a Colorado. It is just another unreal event in what has been an incredible week." The Chevrolet Colorado, 2015 Motor Trend Truck of the Year®, was engineered to be the most capable, most versatile and most technologically advanced midsize truck in the market. With class-leading horsepower and fuel economy along with a 4G LTE built-in Wi-Fi hotspot, the Colorado adds a new dimension to the Chevy truck line.

Surprise! GM putting aluminum in next-gen pickups

Last month, General Motors launched a series of ads touting the benefits of steel over aluminum – specifically, with regard to the Chevy Silverado versus the Ford F-150. (Kind of. We're not sure what a grizzly bear has to do with anything.) We took issue with the ads, with editor in chief Mike Austin saying they "reek of insecurity, and distract from the Silverado's strengths that could be used for positive advertising." But what bothers us more, is that yet another report surfaced claiming anti-aluminum GM will indeed use the weight-saving material in its next-generation fullsize trucks. On Tuesday, GM announced a $877-million investment for its truck plant in Flint, MI. But Reuters says that huge overhaul is because the trucks will use "substantially different equipment than the tools GM uses today." The report specifically states, "People familiar with the company's plans say GM's next-generation pickups and SUVs will make use of various materials, including aluminum and lightweight steel, to shed weight and gain fuel efficiency to meet tougher federal standards." The Silverado already uses a few aluminum components in the engine and hood, and if more widespread use will help GM build its best fullsize trucks ever, then that's great. Honestly, we have no reason to doubt that aluminum will be used in the next Silverado and GMC Sierra. We just hope GM remembers that nothing is ever truly deleted from the bowels of the Internet when it launches the subsequent "look how great aluminum is!" campaign. Related Video: News Source: Reuters Green Plants/Manufacturing Chevrolet GM GMC Truck aluminum steel