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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.

Chevrolet Colorado ZR2 concept suggests a diesel off-road future

"It takes the Colorado to a whole new place." – Mark Reuss The Chevrolet Colorado looks set to gain a more capable off-road version, with the company previewing a potential design direction with a ruggedized concept Wednesday at the Los Angeles Auto Show. Called the Colorado ZR2, the concept brings back the name used on off-road-tuned S-10 and Blazer models in the 1990s and 2000s. The ZR2 has a track that's four inches wider than the Colorado Z71, which is currently the line's most capable off-roader. The ZR2 is fitted with a new grille, power-dome hood, custom wheel flares and off-road-style fascia that reduces overhang and has flip-out aluminum tow hooks. It's all slathered in an outdoorsy hue dubbed Cyprus Green. The are electronic locking front and rear differentials, skid plates and mono-tube coilover shock absorbers. It all rolls (or crawls) on 275/65R18 off-road tires wrapped around custom 18-inch aluminum wheels. There's also a spare tire assembly mounted in the bed, which has a spray-in liner and 48-inch lift jack should things go afoul on the trail. "It takes the Colorado to a whole new place," Mark Reuss, General Motors executive vice president of global product development, said at the reveal. Power comes from the 2.8-liter Duramax diesel engine making 181 horsepower and 369 pound-feet of torque. This engine will arrive later in the year in the production Colorado. While the ZR2 remains only a concept, it suggests a new path for the Colorado – one we hope Chevy decides to take. Chevrolet Introduces Colorado ZR2 Concept Aggressively styled, more capable and driven by new 2.8L Duramax diesel engine LOS ANGELES – Chevrolet today introduced the Colorado ZR2 concept – a vision of how Chevrolet could take the all-new midsize truck's off-road capability to the next level. It also showcases the new 2.8L Duramax diesel engine that will arrive in the Colorado lineup later next year. The aggressively styled concept builds on the capabilities of the production Colorado Z71 and advances the legacy of Chevrolet's previous ZR2 production models. "From the bold stance to the trail-ready special equipment, the Colorado ZR2 is all about the fun of driving where the pavement ends – and doing it in characteristic Chevy style," said Tony Johnson, Colorado marketing manager.

GM recalling 316k vehicles due to headlamp faults

General Motors has announced a recall covering 316,357 vehicles globally, due to the possibility of sporadic or permanent failure of the low-beam headlamps. 273,182 of these vehicles are in the United States, while the remaining affected units are in Canada, Mexico, and elsewhere. This recall includes the 2006-09 Buick LaCrosse (pictured above), 2006-07 Chevy TrailBlazer and TrailBlazer EXT, 2006-07 GMC Envoy and 2006 GMC Envoy XL, 2006-07 Buick Rainier, 2006-08 Saab 9-7X, and 2006-08 Isuzu Ascender. In an email sent to Autoblog, General Motors explains that if the headlamp driver modules are not functioning correctly, "the low-beam headlamps and daytime running lamps could intermittently or permanently fail to illuminate." GM states that this problem does not affect things like high-beams, turn signals, marker lamps, or foglamps. As of this writing, GM states it "has not been able to confirm whether the HDMs in these vehicles caused any vehicle accidents." The National Highway Traffic Safety Administration has been notified, but the recall has not yet posted to the government agency's website. Scroll down to read the full details in GM's email. General Motors is recalling 273,182 Buick LaCrosse sedans and Chevrolet, GMC, Buick, Saab and Isuzu midsize SUVs in the U.S. for possible intermittent or permanent loss of low beam headlamps. Affected models are: 2006-2009 Buick LaCrosse sedans; 2006-2007 Chevrolet TrailBlazer and 2006 TrailBlazer EXT; 2006-2007 GMC Envoy and 2006 Envoy XL; 2006-2007 Buick Rainier; 2006-2008 Saab 9-7X and 2006-2008 Isuzu Ascender midsize SUVs. If the headlamp driver modules is not operating correctly, the low-beam headlamps and daytime running lamps could intermittently or permanently fail to illuminate. This condition does not affect the high-beam headlamps, marker lamps, turn signals, or fog lamps. GM has not been able to confirm whether the HDMs in these vehicles caused any vehicle accidents. The total population, including the U.S., Canada, Mexico and exports from North America is 316,357. The NHTSA was sent the Part 573 information for this recall on November 25. It has not yet posted to the NHTSA website. Featured Gallery 2008 Buick LaCrosse CXS News Source: General Motors Recalls Buick Chevrolet GM GMC Isuzu Saab SUV Sedan chevy trailblazer buick rainier isuzu ascender