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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.

What we know, and think we know, about the 2016 Chevy Volt

With the next-gen Chevy Volt due to make an appearance at the Detroit Auto Show early next year, bits and pieces about the new car are making their way into the press. Perhaps most importantly, the new Volt is going to have better "fuel economy and efficiency," according to GM executive vice president Mark Reuss. The current Volt gets 98 MPGe and 37 miles per gallon on premium fuel. It also has a 38-mile electric-only range. We don't know how GM will improve the efficiency or to what degree, but the logical options include making the car lighter, giving it better aerodynamics and/or improving the powertrain. To that end, one of the big things we don't know for sure includes information on the new gas-powered engine. Forbes says it will be a downsized 1.0-liter, three-cylinder mill instead of the 1.4-liter, four-cylinder used in the current model, which could certainly help the car be more efficient. The new Volt is also going to have more technology, which shouldn't surprise anyone. GM is now openly talking about how it will change the way it markets the Volt, shifting away from the mass-market mentality to focus on the regions where the car is already popular. "There's a Northeast and West Coast market for Volt, and there's nothing wrong with that," Chevy chief marketing officer Tim Mahoney told Forbes. There are rumors that the new Volt will have seating for five by adding a seat in the back. This is something a lot of current Volt owners would love, but we've heard nothing official hinting that this would be the case. We expect the battery to be the new 17.1-kWh version, or maybe even have a capacity increase, so GM would have to seriously repackage the pack to eliminate the ridge that runs from between the front seats and then back to the rear two seats. If you've heard anything official, do let us know.

GM and Isuzu to partner for medium-duty commercial truck

General Motors is returning to the medium-duty truck business in the US for the first time since 2009 thanks to a new deal with longtime-partner Isuzu. The arrangement brings the Isuzu N-series models to Chevrolet dealers with the Bowtie's branding on them in 2016. There are six medium-duty Chevy models arriving at dealers in regular cab and crew cab bodies: the 3500, 3500HD, 4500, 4500HD, 5500, and 5500HD. The trucks will be sold as a bare chassis for buyers to outfit to their needs. Depending on model, customers will have the choice of an Isuzu-sourced 3.0-liter and 5.2-liter diesel engines or a 6.0-liter V8 gasoline-fueled engine from GM and six-speed gearbox. According to company spokesperson Bob Wheeler to Autoblog, the diesel models will be built in Japan and the rest assembled from knockdown kits in Charlotte, MI. This kind of vehicle sharing isn't uncommon for GM in the commercial segment, and it already partners with Nissan to use the Japanese brand's NV200 as the City Express van. The General also once owned a significant stake in Isuzu, and the two have remained collaborators even since then. Isuzu and GM Enter Commercial Vehicle Collaboration Agreement in the U.S. 2015-06-15 DETROIT and FUJISAWA, Japan – General Motors Co. (NYSE: GM) and Isuzu Motors (TSE 7202) have reached an agreement on a U.S. commercial vehicle collaboration, allowing Isuzu to strengthen its product lineup and GM to expand its commercial vehicle portfolio. Isuzu will produce low cab forward models for GM, based off of the Isuzu N-Series. The vehicles will be distributed by participating Chevrolet dealers in the U.S. market starting in 2016. To strengthen the product lineup, GM and Isuzu will explore the use of GM commercial vehicle components for Isuzu low cab forward trucks and GM will continue to produce and supply the 6.0L V-8 gas engine and six-speed transmission for Isuzu gasoline-powered low cab forward trucks. Isuzu and GM have maintained a strategic partnership for more than 40 years, producing collaborative business opportunities throughout the world. This agreement continues that tradition and reinforces a long-term relationship that helps to explore future collaborations in the U.S. commercial vehicle business. About General Motors General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets.