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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 crab walked the Hummer EV truck up and down Woodward this weekend

Sometimes, manufacturers like to show off their fancy new wares at the Woodward Dream Cruise. It’s largely done through static showcases with big displays for the public to gawk at. However, GM did something a little different with its GMC Hummer EV truck this year. Instead of parking it at the Chevy and GM display area, it took to Woodward Avenue itself to show off the Hummer in pre-production form. Not only did GM drive the electric truck on the road in front of thousands, but it crab walked the whole way. This was our first time, and probably most of the publicÂ’s first time seeing the Hummer EV crab mode in person. Judging from the crowdÂ’s reaction (GM got its wish of everybody paying attention), folks are impressed, and maybe a bit confused at the HummerÂ’s sideways movements.  ItÂ’s a strange spectacle to see in person. At first, the truck appears as though itÂ’s sliding sideways on ice in a smooth, graceful slide. ThatÂ’s because even though the wheels are turned, the front of the truck is still pointing dead straight ahead. The GM employee behind the wheel of the prototype appeared to be moving forward at about 5-10 mph — it appears shockingly quick in person for the way this behemoth of a truck presents itself. The tech making it work is rather simple in concept. GM simply took existing rear-wheel steering technology, then amplified and modified it for this type of movement. Whereas most cars with rear-wheel steering max out at around 5 degrees of lock with the rear wheels, this Hummer can turn the wheels up to 10 degrees. Turn the wheel left or right in crab mode, and the Hummer moves diagonally down the street. If you use it for its intended purpose, crab mode is meant to help you navigate the Hummer through trails it might otherwise be too big to fit through using regular steering. In reality, we suspect most folks might use crab mode in the exact same fashion as GM did this past weekend: to impress people. And honestly, we canÂ’t blame them. It was a seriously cool sight to see. Crab mode in action: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

GMC confirms Hummer EV will be joined by an electric Sierra, or Sierra-like, pickup

GMC will step into the electric vehicle arena for the first time when it begins building the Hummer EV in 2021. While it's not planning on becoming an electric-only brand, it has more battery-powered models in the pipeline. "There will be an all-electric Sierra pickup, but no timeline yet. But, the plan is to make it electric; this whole electric thing is a moving target," Lynn Thompson, the president of a Buick-GMC-Cadillac dealership in Missouri, told the Detroit Free Press. He said executives revealed those plans during a national dealer meeting. What remains to be seen is whether the truck will be an electric variant of the Sierra as Thompson said, or if it will arrive as a standalone electric truck with Sierra-like dimensions and capabilities. Sister company Chevrolet is also planning to launch an electric pickup in the coming years, and it strongly hinted it will take the second route. Its entry into the segment won't look like a Silverado, and nothing seriously suggests it will be badged as one. It will also be interesting to watch how GMC ensures that the truck doesn't overlap with the Hummer EV, which will exclusively be offered as a four-door pickup with a relatively short cargo box when it arrives in stores as a 2022 model. Our crystal ball tells us the Hummer will be marketed as a more expensive model aimed at weekend adventurers who want to make a statement, while the Sierra-like model will be cheaper and primarily aimed at buyers who merely want a truck, whether they're commuters, contractors, or fleet operators. Chevrolet's entry into the segment will slot beneath these two models. General Motors used this strategy nearly 20 years ago to keep the Hummer H2, the GMC Yukon, and the Chevrolet Tahoe in separate corners of the same room. GMC's electric truck could share powertrain and chassis components with the Hummer EV. It might also be built in the same Hamtramck, Michigan, factory that parent company General Motors is funneling $2.2 billion into. Regardless of the path it takes, GMC is not going all-electric. "[GMC boss] Duncan [Aldred] said we're certainly not going to abandon our internal combustion engine vehicles because that's our core business, and that was good to hear. It's to let people know they're not going down the same road as Cadillac," a dealer who asked to remain anonymous said. Cadillac might go EV-only by 2025, starting with a crossover named Lyriq, and many of its dealers have refused to spend $200,000 on upgrades.