GM CEO: "World Events" Behind Stock Fall

by Jeff Gilbert
WWJ AutoBeat Reporter

GM CEO Dan Akerson says that concerns about the impact of rising gasoline prices, and shortages of Japanese parts have caused investors to shy away from his company's stock, putting it well below the $33 a share Initial Public Offering price.

"Oil is a concern on the investor's mind," Akerson told the annual IHS Automotive/NADA Conference, on the eve of the New York Auto Show.  "I think the supply chain, as the result of the disaster in Japan's an issue.  Although, I think we've navigated those waters very, very credibly."

There are reports that the government is planning to sell off it's remaining 33 per cent share in GM over the summer, so that it won't be an issue in the 2012 election.  While previous CEO Ed Whitacre had bluntly said he wanted the government out of GM as soon as possible, Akerson says it's not his call.

"I'm not eager about anything," he told reporters.   "They will tell us when they are getting out.  I will not tell them when they are getting out.   I don't know what's going to go into their calculus.  I think there are very many variables in their calculation, and they don't share them with us."

On the issue of the Japan Earthquake, Akerson praised the efforts of GM employees who kept the parts pipeline running.

GM went into crisis mode as soon as the earthquake hit, Akerson said, and had hundreds of people in Japan within 48 hours.  Employees were sent from the U.S., U.K, Germany, South Korea, China and the Czech Republic.

"Teams have been successful in coordinating, facilitating and tracking all supplier issues coming out of Japan," said Akerson, telling reporters after his speech that  while GM has idled a few plants briefly to control the flow of parts, they've had no other production interruptions.

"I don't think we'll have any problems going forward," Akerson told WWJ AutoBeat Reporter Jeff Gilbert.  "Given what we know today, we're feeling better than we did a month ago, and a lot better than we did five weeks ago."

The GM CEO also feeling fairly confident that the Chevy Volt did not cause a fire in Connecticut, that destroyed a garage, and two vehicles in it, including the Volt.  He pointed out that the other vehicle in the garage was an experimental electric vehicle, designed by its owner, likely without the safety equipment that's put on the Volt.

"We spent a lot of money, there are a lot of checks and there are a lot of safety features to the car," he said.  "We are reasonably sure at this point of time, not perfectly sure, but we are reasonably sure it is not a Volt issue.  Time will tell."

Akerson touching on a number of subjects during his New York appearance:

• The prospects of a sustained fall in oil prices are "dim," but GM is better prepared for higher gas prices than it was in 2008.
• No apologies for incentives, which Akerson says boosted GM sales, and kept the competition "off guard."
• The auto industry is too "insular" and needs more input from the outside.
• He's sometimes been to thin skinned as GM CEO, and is not used to the spotlight that's put upon those who run a public company.

Follow Jeff Gilbert on Twitter @jefferygilbert