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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.

First 2016 Chevy Volt commercial rocks us to sleep

The 2016 Chevrolet Volt, with its thorough restyling and increased all-electric range, is an exciting evolution of Chevy's groundbreaking plug-in hybrid, so it's only fitting that the commercial campaign to sell it to the masses also be engaging and vibrant. Well, the first ad has just been officially released and it rocks... us to sleep. Now, we get that General Motors didn't want to repeat past Volt-commercial mistakes. No one wants to see dogs licking feet or dumb (and weirdly horny) aliens again. Nor would it be smart to slam all-electric vehicles, since it now sells the Spark EV and has just revealed its 200-mile Bolt concept. So, what does that leave? How about a mostly computer-generated spot that relies on cliche images and an upbeat synthetic soundtrack to communicate that the Volt is now as boring as other four-door appliances? An intro, featuring a lightly-bearded gentleman peering at his tablet through designer glasses launches us into the action as the Volt makes its way across a city bridge, then a curvaceous country road. Chevrolet doesn't include voiceover to inform you that the new Volt has a 50-mile battery-only range. There's no mention of its gas mileage once its electric charge is depleted – items that just might be of importance to hybrid buyers. The ad also makes no attempt at establishing an emotional connection, either through drama or comedy. There are, however, lots of fast cuts of the new, normalized interior, including a two-second detail shot featuring the windshield wiper switch. We imagine that this is only the first in a series of spots that will tell the Volt story and motivate potential buyers to run down to their local dealer, hopefully the next spots will be more interesting and informative. View 16 Photos

Fullsize GM SUVs have a problem that's making owners sick

Some fullsize SUV owners are getting sick, thanks to a buffeting and vibration problem in 2015 model year examples of the Chevy Tahoe and Suburban, Cadillac Escalade, and GMC Yukon. According to owners' complaints to the National Highway Traffic Safety Administration, the issue can vary from an annoying vibration inside the cabin to an experience so severe that it leads to dizziness and headaches. General Motors is aware of the complaints, but the fix isn't so simple. According to spokesperson Tom Wilkinson to Autoblog, the company "has been tracking this issue for a while." The problem has a fairly low incidence rate, but when it does occur the issue can be "uncomfortable and annoying for owners." There's no precise cause for the issue, Wilkinson claims, and in some cases, simply balancing the tires or changing the door seals can make it go away. However, not all of the fixes are so simple. AutoGuide dug deep into the problem and discovered a GM preliminary information bulletin that advised dealers to remove the headliner and to check the roof's bonds to the bows that go across the vehicle. However, that document included a note that the solution might not entirely eliminate things. According to AutoGuide, adding Dynamat insulation to the roof sometimes helped the problem. A GM spokesperson also told AutoGuide the company fixed the problem at the end of the 2015 model year, and didn't go into any more detail. This roof issue seems linked to some of the worst droning in these SUVs. According to one complaint from a 2015 Suburban owner to NHTSA: "Roof will not remain attached to the roof bows. This causes the buffeting similar to a window being down when all are up. The results span from annoying to painful." A 2015 Yukon owner claims to have another alleged cause for the problem in a NHTSA complaint from February 2015. This person brought their SUV to the dealer seven times over the course of four weeks for vibrations. The dealer replaced the driveshaft, suspension components, and more, but nothing worked. According to an engineer to the service adviser: "In an effort to prevent roll overs, they designed the frame and body mounts too stiff. There are 40 engineers working on issues, they have no solutions that work across the board." Wilkinson told Autoblog that GM is working with customers on an individual basis to rectify things. Since these are newer vehicles, dealers should also fix the problem under warranty.