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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.

Best and Worst GM Cars

Oh yes, because we just love receiving angry letters from devoted Pontiac Grand Am enthusiasts, we have decided to go there. Based on a heated group Slack conversation, the topic came up about the best and worst GM cars. First of all time, and then those currently on sale, and then just mostly a rambling discussion of Oldsmobiles our parents and grandparents owned (or engineered). Eventually, three of us made the video above. Like it? Maybe we can make more. Many awesome GM cars are definitely going unmentioned here, so please let us know your bests and worsts in the comments below. Mostly, it's important to note that this post largely exists as a vehicle for delivering the above video that dives far deeper into GM's greatest hits and biggest flops, specifically those from the 1980s and 1990s. What you'll find below is a collection of our editors identifying a best current and best-of-all-time choice, plus a worst current and worst-of-all-time choice. Comprehensive it is not, but again, comments. -Senior Editor James Riswick Best Current GM Vehicle Chevrolet Corvette We were flying by the seats of our pants a bit in this first outing and my notes were similarly extemporaneous. When it came time to tie it all together on camera, I failed spectacularly. Thank the maker for text, because this gives me the opportunity to perhaps slightly better explain my convoluted reasoning. I chose the C8 Corvette because it's simply overwhelmingly good, and it's merely the baseline from which this generation of Corvette will be expanded.  While the Cadillac CT5-V Blackwing (more on that in a minute) is an amazing snapshot of GM's current performance standing and its little sibling so enraptured me that I went out and bought one, their existence is fleeting. Corvette will live on; forced-induction Cadillac sport sedans, not so much. So while all three are amazing machines when viewed in a vacuum, the Corvette stands above them as both a reflection of GM's current performance credentials and a signpost of what is to come. So, given the choice between the C8 and the 5V-Blackwing right now, I'd choose the C8. In 10 years, when the Blackwing is no longer in production and Corvette is in its 9th generation? Well, that might be a different story. Now, just pretend I said something even remotely that coherent when we get to the part of the video where I try to make an argument for the 5-V Blackwing as best GM car I've ever driven. Or just laugh at me while I ramble incoherently.

Is your new-car warranty good at the race track?

We've all heard the horror stories. Your buddy knows a girl that was dating a guy whose best friend's brother once broke his brand-new, recently purchased performance car while making runs at a drag strip or laps at a track day, and the manufacturer wouldn't cover the repair under warranty. True story? Urban legend? Complete crap? Yes, no, maybe. One thing's for sure: Automotive warranties have always come with caveats. In 1908, an ad in the Trenton Evening Times clearly stated: "All Ford Cars Guaranteed for One Year." Although it changed over time, by 1925 the Ford New Car Guarantee only covered 90 days on material and 30 days on labor, and it clearly stated that that there was "No guarantee whatever on Fan Belts, Glass, Bulbs, Wiring, Transmission, Bands, Hose Connections, Commutator Shells, Rollers, Spark Plugs or Gaskets." Whether or not Ol' Henry would pay to fix your Model T if you broke it shaving a tenth off your lap time at the local board track seems to be lost to history. We're guessing no. But what about today? Do new-car warranties in 2017 cover cars when they are driven on race tracks? We researched the warranties of 14 auto brands to find out, and the answer is yes, no, maybe, depending on the brand, in some cases the model, and whether or not your car is modified from stock. Acura has been out of the high-performance car game for a number of years, but jumps back into the party in 2017 with its hybrid-powered $173,000 NSX supercar. And Acura's warranty, as well as Honda's, clearly states that it does not cover "the use of the vehicle in competition or racing events." View 33 Photos So we asked Sage Marie, Senior Manager of Public Relations for Honda and Acura. "If the car is stock, the warranty covers it on a track just as it does on the street. No question," he told us. "However, if the car is modified, say with slick tires or other components that would put higher stresses on the vehicle's parts and systems, then we would have to investigate the circumstances further." Marie went on to say the same would be true for any Acura model or Honda vehicle, including the new 2017 Honda Civic Si. This became a common theme. Chevrolet actually started this practice with the fifth-generation Camaro on the high-performance ZL1 and Z/28 models.