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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 alerting truck and sedan owners to a do-over on brake recall

A recall campaign intended to address issues with braking systems on certain 2019 General Motors trucks and sedans may have introduced a new issue, the automaker has acknowledged, and thousands of owners driving repaired vehicles may need to return to their service departments for another update.  The update addresses a fix that was pushed out to owners of more than half a million brand-new GM trucks and sedans that could potentially lose partial braking function, according to the Detroit Free Press. The original software fix helped address situations where the vehicles' anti-lock braking systems would become disabled, which in turn would prevent electronic stability control from activating. Vehicles subject to the recall would often experience software glitches that prevented them from properly communicating the operational state of these systems, meaning drivers would have no idea that their brakes may not behave as expected in an emergency. The 2019 Chevrolet Silverado 1500, Cadillac CT6, and GMC Sierra 1500 were all recalled in the original campaign.  Unfortunately, the early version of this fix appears to have introduced yet another software glitch, indicating that the original fix did not do the trick. Those who have not yet had their cars serviced can rest easy; they will only receive the most up-to-date version of the software fix.  Related video    

Chevy launches Daytona delivery program with on-track driving

Talk about a dealer incentive: Buy a new Chevy and then shake it down at Daytona International Speedway. Chevy announced plans Thursday to launch a delivery program that will allow customers to pick up their new vehicles and then drive on the iconic 57-year old circuit. It will start later this year on 2017 models and includes a tour of the speedway, a keepsake of the event, and documentation that the car was driven at Daytona. The delivery center will be on the infield near victory lane. Chevy already offers a similar program that allows enthusiasts to get their new Corvettes at the National Corvette Museum in Bowling Green, KY. That costs $990, which is around the estimated price point for the Daytona delivery plan. "Select Chevy models," will be part of the program, spokesperson Afaf Farah said, "but the intent is to offer across a wide array of vehicles." It won't be a limited to a specific number, and Chevy will meet customer demand, she said. Daytona recently received a $400 million-facelift that had been ongoing since July 2013. It now seats 101,500 and has more restrooms and concessions. It was shown off in January at the Rolex 24 and will command a larger spotlight this weekend at the Daytona 500. Take a Spin in Your New Chevy at Daytona International Speedway DAYTONA BEACH, Fla. – Have you ever wondered what it is like to drive on the track at the famed Daytona International Speedway? If you buy a new Chevrolet, your dealer will be able to offer you that opportunity. Chevrolet and DIS today announced an exclusive delivery experience at the Speedway. This extra cost option will be available later this year through U.S. Chevrolet dealers on select new vehicle orders. While details are still being finalized, customers who order the option can expect: • A tour of Daytona International Speedway • An on-track driving experience • A keepsake to commemorate the experience • Authentication that the vehicle was delivered and driven at the Speedway "Chevrolet is committed to offering our customers the best overall vehicle ownership experience possible – starting with the most technologically advanced and most dynamic vehicles in the brands history," said Alan Batey, president of General Motors North America and leader of Global Chevrolet.