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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 will recall 3.5 million pickups and SUVs to fix brake issue

WASHINGTON — General Motors Co is recalling 3.46 million U.S. pickup trucks and SUVs to address a vacuum pump issue that could make braking more difficult and increase the risk of a crash. The recall, which covers 2014-2018 model year vehicles, including some Cadillac Escalade, Chevrolet Silverado, Chevrolet Tahoe, GMC Sierra, Chevrolet Suburban and GMC Yukon vehicles, was triggered because the amount of vacuum created by the vacuum pump may decrease over time, GM told the National Highway Traffic Safety Administration (NHTSA) in documents posted Wednesday. NHTSA opened a preliminary investigation into the issue in November 2018, and said it had reports of 9 crashes and two injuries related to the issue. It provided GM in July with additional field reports that prompted the automaker to open an investigation. The company did not immediately say on Wednesday how many injuries or crashes are linked to the issue but said it could impact braking in "rare circumstances." GM said dealers will reprogram the Electronic Brake Control Module with a new calibration that will improve how the system utilizes the hydraulic brake boost assist function when vacuum assist is depleted. GM said the vacuum assist pump, which is lubricated with engine oil that flows into the pump through a filter screen, can in some cases lose effectiveness over time, as debris such as oil sludge can accumulate on the filter screen. GM told NHTSA that prior model years used a different brake assist system design, and vehicles manufactured after 2018 were not equipped with the affected pump design. Recalls Chevrolet GM GMC

2017 Chevy Bolt Prototype Quick Spin [w/video]

To say that there's a lot riding on the upcoming Chevy Bolt doesn't quite get at how important this all-electric vehicle could be for GM. To say that there's a lot riding on the upcoming Chevy Bolt doesn't quite get at how important this all-electric vehicle could be for GM. We are entering a new phase for EVs in the US, and it's one where there will be more than one 200+ mile range electric model that will cost around $30,000-$35,000. The two obvious first entries are the Tesla Model 3 and the Bolt, but you can bet your Level 2 charger that Nissan will be joining the party as well, along with all sorts of as-yet-unannounced entries from other automakers. The main change that all of these longer-range EVs will bring is – potentially – to make plugging in your car a mainstream thing. And if the mainstream is in play, then there's money to be made, and you're going to need one heck of an EV to get people to pick your car instead of someone else's. So, yeah, the Chevy Bolt could be a big deal. And today we not only got a bit more information about the car but we also got to go on a really short test drive in a prototype version outside of the Las Vegas Convention Center as part of CES 2016. The "drive" took place in a closed-off parking lot and my two laps through the cone course took less than three minutes, but I can still say that it looks like GM will be bringing a solid option to the marketplace soon. Chevy Bolt Prototype front 3/4 View 16 Photos If you shift into L, the regen becomes wonderfully strong. One of the pleasant surprises in the Bolt prototype is the ability to drive with just one pedal. When in D, the Bolt coasts a bit, which is nice for highway driving, but if you shift into L, the regen becomes wonderfully strong. Strong enough that you don't need to engage the brakes at all if you're in standard city traffic, with lots of gentle stops and starts. If you want even more stopping power without getting the brakes involved, the Bolt also has the regen-on-demand feature that was introduced in the Cadillac ELR and works great in the second-gen Chevy Volt. When you pull the paddle on the left back side of the steering wheel, the electric motor instantly becomes a generator and the Bolt turns forward momentum into energy for the battery pack. It will even bring the car to a complete stop and then hold it when you release the paddle.