The CEO is putting his money where his promises of better GM returns are, so to speak.
In a GM Security and Exchange Commission filing late today, it was recorded that CEO Dan Akerson bought 10,000 shares on the open market with his own money for $25.05 a share. This is the second major purchase the former Wall Street executive has made of shares of the reorganized company, following his order for 30,000 shares back in March, which was filled at $31.33 per share.
Yesterday when General Motors Co. (NYSE: GM) was holding its 2nd Annual Global Business Conference in Warren, Mich., Akerson opened the conference with some gallows humor as investors panicked over the global economic outlook, as well as the U.S. economy and deficit, sending GM stock under $25, well below its IPO price of $33 last fall – and way off its $39.48 high since GM emerged from bankruptcy and resumed public trading last November.
Akerson said it’s a good thing GM had a strong Q2 otherwise the share price would be a lot uglier. (See General Motors Post Q2 Earnings of $2.5 Billion. Most from N.A.)
Akerson vowed during the meeting that there was plenty of upside in GM stock given its new structure and emphasis on managing costs. On a cost cutting side, one program with great promise involves vehicle architectures. Akerson said “We need to simplify.” The company said that by 2018 it plans to cut that number to 14 from the 30 currently in use.
Skeptics, and there are many, say show us the earnings per share and start paying dividends. Well, at least Akerson is putting his money where his promises are, so to speak.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
