Stockholders Give GM CEO An Earful on Share Price

DETROIT (WWJ) - There was one overriding issue on the minds of the roughly fifty shareholders who showed up for GM's annual meeting Tuesday.

"What is your impression in talking to the investment community on why the stock price continues to wallow," one shareholder pointedly asked GM CEO Dan Akerson during the q and a session.

Akerson promised shareholders that they were working to correct the things within their control. He cited the pension buyout offer for salaried workers, that will help get $26 billion in pension costs off the book, and said they were working to turn around money losing operations in Europe.

But, Akerson also pointed out that GM is not the only auto company to see its stock price fall. He said there's a lot of uncertainty in the overall market.

GM's stock launched at $33 a share in November of 2010. It's been trading recently at about two-thirds that price.

"I regret that the stock has not done well post IPO," said Akerson. "I assure you that we're all dedicated to improving that in the intermediate to long-term."

Overall, there were no major announcements during the one hour-long meeting. Akerson said GM is still looking for ways to cut its costs, and make its operations more efficient.

"We have much more work to do to make GM great again," Akerson told stockholders.

At a press briefing before the meeting, Akerson said that GM is not in active talks with the UAW about a buyout for manufacturing workers, but it could happen.

"I'm not saying we're going to do it, but it something we could consider if the opportunity arose," he said.

Even though GM has cut brands, Akerson says it still has too many models.  He promised a fifty percent reduction in vehicle architecture by 2018

Akerson said GM has made progress in dealing with the uncertain situation in Europe, and he believes they can negotiate a settlement with unions there to get the GM's costs down.

The company will be talking with the Canadian Auto Workers Union this summer.  Akerson says those plants are among the most expensive GM operates, but he feels they can reach agreement with the unions there as well.

There were lingering concerns over the fallout from GM's bankruptcy three years ago, which left stock in the old company essentially worthless. One current shareholder said he invested a lot of money in Ford and GM several years ago, and while his Ford investments are coming back.

"General Motors, on the other hand, that I've been loyal to all these years, shafted me."

Citing the fact that they are now a new company, Akerson declined to comment on anything that happened before the bankruptcy. But, he acknowledged that today's GM is a work in progress.

"This company is in the midst of a rebirth, a reformation, if you will," he said. "We understand that the past can not be prologue. We just can't accept that.
We have to become much more nimble."

Akerson also apologized to a shareholder who said he was treated poorly when he complained about problems with a Cadillac. He said GM's working hard to improve its customer service.

"If that ever happens again, call me directly," he said.

The largest concern going forward, Akerson says, is the overall economy.  But, he believes that congress and the president can come to agreement on taxes and spending, even in an election year.

"I have this fundamental optimism that our political leadership will find a way to compromise and put together an economic package that will keep us out of recession."