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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.

2019 Buick Regal to get Avenir luxury treatment

Buick will make the 2019 Regal sedan available in its top-tier Avenir trim, the fourth Buick model to carry the sub-brand name after the Enclave, LaCrosse and the GL8 in China. Buick says the Avenir line is selling faster than other trim levels on both the Enclave and the LaCrosse, and that half of all Regal Sportback buyers are opting for the top trim level, reflecting buyers' demand for more premium midsize cars. "Avenir sales have exceeded our expectations," Phil Brook, vice president of Buick and GMC Marketing, said in a statement. "Buick customers value the exclusive styling, premium features and convenient experience Avenir provides, and we are excited to extend that successful formula to Regal." So what's the Regal Avenir all about? Well, Buick will debut its first cloud-connected infotainment system, bringing embedded apps and enabling owners to set up their own profiles and user preferences for use in things like available navigation and voice-recognition, and carry over that profile to other compatible vehicles. The Avenir will come standard with safety and driver-assist technologies such as rear park assist, rear cross traffic alert, lane-change alert with side blind zone alert, LED headlights with auto leveling, cornering lamps and driver-side auto-dimming mirrors. Advanced adaptive cruise control and other active safety technologies are also available. Inside, there's a "Whisper Beige" theme with ebony accents, diamond quilt-stitched front seats, embroidered first-row headrests and sill plates carrying the Avenir script. An ebony theme is also available. The exterior gets a more dramatic look, with the Avenir 3-D mesh upper grille, script badging on the front doors and 19-inch Pearl Nickel wheels. Under the hood is the Regal's standard 250-horsepower 2.0-liter four-cylinder making 260 pound-feet of torque and mated to a nine-speed automatic. Avenir was the name of a four-door concept Buick unveiled as a surprise in 2015 in Detroit. The next year the company announced it would use the name as a top-tier trim level starting with 2018 Buicks. Pricing for the 2019 Buick Regal Avenir will be announced when it arrives at dealers. Related Video:

GM to idle car production at five factories as Americans continue CUV love affair

In case you needed another reminder that Americans have fallen out of love with sedans, General Motors today announced plans to idle five factories in January in a bid to cut its inventory to 70 days. Detroit-Hamtramck Assembly ( Buick LaCrosse, Cadillac CT6, Chevrolet Volt and Impala) and Fairfax Assembly in Kansas ( Chevy Malibu) will stop production for three weeks. Lansing Grand River ( Cadillac ATS and CTS, and Chevy Camaro) is going down for two weeks, while Lordstown, OH ( Chevy Cruze) and Bowling Green, KY ( Chevy Corvette) will go idle for a week each, Automotive News reports. GM's shutdown reflects a broader problem with the company's supply – at 847,000 vehicles, the company's supply increased unsteadily from a low of 629,000 units in January of 2016. That's more than a 25 percent increase in the past year. Citing information from Autodata, The Detroit News reports that at the end of November, GM had a 168-day supply of LaCrosses, 177 days' worth of Camaro, 170 days of Corvette, 121 days for Cruze, 119 days for ATS, 132 days for CTS, and 110 days of CT6. Meanwhile, inventory of the company's more popular vehicles is actually below the professionally accepted 60- to 70-day supply, The News reports. The Trax, Colorado pickup, and GM's full-size SUVs are sitting below 50 days and experiencing year-over-year sales increases. GM needs a rethink of its inventory levels, which is something that's apparently coming. "We're going to be responsible in managing our inventory levels," GM spokesman Jim Cain told The News. Another unnamed spokesman told Automotive News the company's day-to-day supplies would "fluctuate before moderating at year-end." But at least one analyst thinks this won't be the last time Detroit needs to stop production to level things out. "Incentives are elevated, residuals are declining, and rates are rising," Brian Johnson, an analyst with Barclays, told The News. "And while GM in particular may benefit in the months ahead from new product launches, it's important to recognize that GM's inventory is elevated at the moment, and it wouldn't surprise us if they need to announce another production cut – which could pressure the stock." Related Video: News Source: The Detroit News, Automotive News - sub. req.Image Credit: Paul Sancya / AP Plants/Manufacturing Buick Cadillac Chevrolet GM GMC Crossover SUV Sedan bowling green cadillac xt6 fairfax