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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 wants to have 10 plug-in models in China in five years

Last we checked, General Motors was selling all of three plug-in vehicle models in its home country of the US, and is prepared to make the Chevrolet Bolt EV available on these shores later this year. So it's notable that the automaker is hatching plans to have at least 10 plug-in variants for sale in China within the next five years, according to Hybrid Cars. Which plug-ins are coming remains a mystery. GM started selling a hybrid version of the Buick LaCrosse in China this month. The strategy makes sense, as China is now the world's largest car market, and accounts for about a third of GM's annual revenue. The automaker, which operates in China under the SAIC-GM and SAIC-GM-Wuling joint ventures, sells cars there under the Chevrolet, Buick, Cadillac, and Boujun badges, and has been doing so for the better part of two decades. Most recently, GM started selling a hybrid version of the Buick LaCrosse in China this month. What we do know is that GM is building its Cadillac CT6 Plug-in Hybrid in China, with distribution to be split between China and the US. That model, which is scheduled to start sales by the end of the year, is being built overseas because of a combination of Chinese government support for new-energy vehicle technology through incentives and the fact that battery-pack maker LG Chem makes most of its cells in nearby South Korea. The plug-ins are part of a broader plan by General Motors to either introduce or substantially tweak about 60 models by the end of the decade. With such new models, GM looks to boost unit sales by as much as five percent a year for the next few years. As for the other nine plug-in models slated for China by 2021, the company is mum. GM spokesman Dan Flores declined to comment to AutoblogGreen. Related Video: Featured Gallery 2016 Cadillac CT6: First Drive View 32 Photos News Source: Hybrid Cars Green Cadillac Chevrolet GM Electric Hybrid PHEV

Genesis wins J.D. Power Tech Experience Study for third straight time

The results are out for the J.D. Power 2023 U.S. Tech Experience Index (TXI) Study, which "focuses on the user experience with advanced vehicle technology as it first comes to market and is an early measure of problems encountered by vehicle owners." Its measurement metric is problems per 100 vehicles (PP100), same as with the J.D. Power Initial Quality Study (IQS). The takeaway this year isn't that owners aren't using advanced technologies, as was the case with the 2022 study, or that they're having more problems with them overall. It's that owners of battery-electric vehicles are having more problems with advanced tech than owners of ICE-powered vehicles. According to the study, 17 of 21 features that can be had on both propulsion types — such as remote parking assistance and gesture controls — get lower satisfaction ratings by owners of BEVs, in some cases nearly 20 PP100.  The survey organization says this tracks with what its found in the IQS, where total vehicle problems were "46% higher among BEVs (excluding Tesla) than ICE vehicles and satisfaction is lower among owners of BEVs across nine of 10 APEAL categories than among owners of ICE vehicles." Findings regarding biometric measurements are among those that go against the overall study findings. Whether a fingerprint reader or an eye tracker, car owners in general said "they do not consider them to be useful." In terms of ease-of-use and satisfaction, plug-and-charge capability on EVs gets good marks. This allows EV owners to plug into a public charger and have payment taken care of automatically; the vehicle communicates with any charging station compatible with an automaker's plug-and-play system, so the vehicle can automatically submit a bill for the charging session to a central owner account with no further action needed at the station. Survey respondents noted a mere 6 PP100 and an 88.9% satisfaction.    Among manufacturers, repeat winners took the top prizes. Genesis earned the highest rank for innovation overall and among premium brands for the third straight year. Hyundai not only won the tech innovation banner for mass market brands for the fourth straight year, ahead of Kia, GMC, Ram and Subaru, Hyundai finished in second in the overall standings. On that overall chart, the top five are Genesis, Hyundai, Cadillac, Lexus and BMW. On the premium chart, Genesis is followed by Cadillac, Lexus, BMW and Mercedes-Benz in the top five. It wasn't close from the first to the rest, though.