GM investors still confident despite $3 billion cut in share value

Article by Christian A., on April 9, 2014

The recent recall crisis at General Motors Co. has wiped out $3 billion in shareholders’ value in just four weeks, but many of the carmaker’s institutional investors remained confident in its stock. GM chief executive Mary Barra has apologized for the fatalities linked to faulty ignition switches and vowed to aggressively probe into why it took the carmaker to do anything although some were already aware of the defects as early as 2001.

Scott Schermerhorn, chief investment officer of Granite Investment Advisors Inc. that oversees $600 million and owned 464,469 GM shares as of Dec. 31, 2013, remarked it seems that people at GM are doing the best job they can, given the circumstances, adding that Barra is being very candid.

The US Congress and the Justice Department are probing what occurred before GM recalled 2.59 million compacts in February and March. Matthew Moran, a fund manager at River Road Asset Management LLC that manages around $11 billion and owned 183,158 GM shares as of Dec. 31, remarked while the fallout might briefly affect sales, GM’s stock drop is excessive. GM shares have fallen 7.6 percent since March 7.

“It’s a little silly that it’s traded off to the extent that it has,” Moran said of GM. He said that Barra is doing a fine job, and he is optimistic on her abilities to lead the carmaker. Moran and Schermerhorn took note of what occurred at Toyota Motor Corp. after it recalled over 10 million vehicles over sudden, unintended acceleration issues.

Topics: gm, investment

If you liked the article, share on:

Comments

Recommended

You probably heard about Ford’s CEO Mark Fields’ departure from the company. Fields has spent almost three years with the company, and now, he is going to be replaced by...
by - May 28, 2017
A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries