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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's Ultium EV platform finally shows up in Q3 sales numbers

General Motors has heralded its Ultium battery-electric platform as the future of its passenger car and truck lineup, but for the first two years of its existence, its impact on the marketplace has been virtually nonexistent. Well, that finally changed in the third quarter of 2023, and while the cars based on this architecture don't represent anywhere near the volume of GM's broader combustion portfolio, we're reaching a point where Ultium products are finally in view (and in the hands) of real-world shoppers. At this point, five U.S.-market Ultium models are in production: the GMC Hummer EV, Cadillac Lyriq, Chevrolet Blazer & Silverado EV, and BrightDrop Zevo 600. If you're not familiar with that last one, that's OK; it's a commercial product that you likely won't see on the road for some time. Together, these four combined for 4,257 sales in the third quarter alone — up from 2,663 for the entire first half of the year. While that may not seem like a significant uptick when viewed from altitude, the quarter-to-quarter numbers paint a clearer picture.  Let's toss out the stragglers first. The Chevy Blazer EV, and Silverado EV for example, are barely in production. GM delivered 19 Blazers and 18 Silverados in the third quarter and that's the entirety of their production runs so far. Likewise, GM's BrightDrop Zevo 600 delivery van effectively exists apart from the consumer marketplace, so its contribution of just 35 units can be set aside too. That leaves us the two you've heard of: the GMC Hummer EV and Cadillac Lyriq — models with high sticker prices and long reservation queues.  Through the second quarter (remember, we're talking six months here), GMC sold 49 Hummer EVs. No typo. In the three months that made up the third quarter, GM moved 1,167 of them. Not only is that a dramatic improvement over the first half, but it's more Hummers than GMC sold in the entirety of 2022 (854). Lyriq's improvement was less eye-popping on paper, but after moving just 122 total units in 2022 and 2,013 of them in the first half of 2023, Cadillac managed to up that figure to 3,018 units in the third quarter alone.  GM is betting its short-term EV future on the Ultium platform, so these trends need to continue if that's going to be a profitable wager.

This is what a 2017 Chevy Camaro Z28 could look like

The latest Camaro Z28, the enthusiast darling of the somewhat frumpy fifth-generation pony car, only hit the scene in 2014. It housed the wonderful 7.0-liter, naturally-aspirated LS7 small block V8 and featured a ton of aero bits. The trickest pieces may have been the dynamic spool valve shocks, legitimately race tech for the road. So with the new Camaro out in the wild, we were wondering what a new Z28 might look like, and thus, commissioned these renders based on our best guesses as to what a future Z28 might be. Since Chevy didn't stray too far from the Zeta-chassis Camaro formula with its new Alpha-based car, our vision of a new 2017 Camaro Z28 likewise is a sequel rather than a reboot. The exterior styling and aero details are similar, but sleeker. The defining and protruding front splitter is back, but it's smoothed slightly and better integrated. It shares quad exhaust pipes with the lowlier SS, but they're of the beveled Z06 variety, and sized up to a howitzer caliber. Instead of a weak faux rear fender vent, our version gains a real brake cooling duct. Some iconic elements, like the hood extractor vent and the large decklid spoiler, remain. What we can't see, we have to speculate on. As the track-focused, hardcore pony car in the Camaro lineup, the Z28 will have to do battle with the Ford Shelby Mustang GT350R. There's simply no avoiding it. And whereas Ford distinguished that car with a 5.2-liter, 526-horsepower, flat-plane-crank V8, Chevy is likely to look to the parts bin to find motivation. This isn't a knock; the LS and LT-series small block V8s are both numerous and power-dense. And there's one engine that seems to do the trick: the LSA, last seen in the old CTS-V and still on sale in the Camaro ZL1 (and of course, still being produced as a crate engine). In ZL1 form, the LSA makes about 580 hp, which is a nice margin over the GT350R. It's also a high-zoot but not top-of-the-line mill, having been mostly superseded by the 650-hp LT4. That puts our probable Z28 far enough behind the new CTS-V and current Corvette Z06 in the pecking order to be a safe bet, without hobbling it with the LT1 shared with the Camaro SS and regular Corvette. Will those trick spool-valve shocks from Multimatic make it to the Z28 again? Ford is taking the GT350R very seriously, and if the expensive but supremely capable suspension system is required to manhandle the Shelby at the track, you can bet that Chevy will pony up for it.