logo
New Delhi

GM Encouraged By Global Recovery, But Not Interested In 'Short-Term Pop' For Stock: CEO Mary Barra

Reuters
Reuters
1 min read
2020-09-15 18:48:44
GM Encouraged By Global Recovery, But Not Interested In 'Short-Term Pop' For Stock: CEO Mary Barra

General Motors Co Chief Executive Mary Barra said on Monday global vehicle demand was recovering from declines caused by the coronavirus pandemic but added she would not take any short-term actions to boost GM's stock at the expense of its long-term strategy. "We are encouraged about the recovery we are seeing in most of our markets," Barra said at an RBC conference, citing strong U.S. industry demand in August and a continued rebound in China.

Labour officials last week said that U.S. consumer prices rose solidly in August, with the cost of used vehicles accelerating by the most in 51 years as Americans likely shunned public transportation because of fears of contracting COVID-19.

GM also is not looking for "a short-term pop" as it relates to its corporate structure, Barra added, when asked about a possible spinoff of the automaker's electric vehicle assets.

"As I've said many times, we will always do what's in the best interest of our shareholders over the long term, not necessarily for a short-term pop," she said.

qgsq42dc

General Motors won't spinoff a separate electric entity yet that will have a higher valuation on the lines of the Tesla

Some analysts and GM shareholders have pushed GM to consider a spinoff of all or some of its EV assets into a separate company that would be valued at headier levels like Tesla Inc and other newly public EV automakers.

During a July earnings conference call, Barra said nothing was off the table when it came to maximizing the value of its EV assets and there was no impediment to a possible spinoff.

On Monday, Barra did not promise a spinoff but talked up GM's EV technology. "We want to avoid any scenario where those competencies are compromised or there is a distraction from speed to market," she said.

Last week, GM said it would join forces with electric vehicle startup Nikola Corp to build electric pickup trucks and hydrogen fuel cell commercial trucks.

Nikola subsequently came under attack from a short seller that accused the startup of being a "fraud." Nikola called the short seller's report a "hit job" and threatened legal action.

Barra on Monday referred questions about the matter to Nikola but said the deal made sense for GM by validating its technology and giving it scale to cut costs.

Latest Cars

  • Maserati MCPura
    Maserati
    MCPura
    Ex-showroom Price
    ₹ 4.12 - 5.12 Crore
  • Citroen Aircross X
    Citroen
    Aircross X
    Ex-showroom Price
    ₹ 8.29 - 13.69 Lakh
  • Maruti Suzuki Victoris
    Maruti Suzuki
    Victoris
    Ex-showroom Price
    ₹ 11.93 - 23.19 Lakh
  • VinFast VF7
    VinFast
    VF7
    Ex-showroom Price
    ₹ 24.23 - 29.57 Lakh
  • VinFast VF6
    VinFast
    VF6
    Ex-showroom Price
    ₹ 19.13 - 21.22 Lakh
  • Citroen Basalt X
    Citroen
    Basalt X
    Ex-showroom Price
    ₹ 7.95 - 13.11 Lakh
  • Mercedes-AMG CLE 53
    Mercedes-AMG
    CLE 53
    Ex-showroom Price
    ₹ 1.35 Crore
  • Renault Triber
    Renault
    Triber
    Ex-showroom Price
    ₹ 5.76 - 8.6 Lakh
  • MG M9 EV
    MG
    M9 EV
    Ex-showroom Price
    ₹ 81.08 Lakh
  • BMW 2 Series Gran Coupe
    BMW
    2 Series Gran Coupe
    Ex-showroom Price
    ₹ 48.72 - 50.76 Lakh

Upcoming Cars

Latest News

View All
  • Home
  • News
  • Auto Industry
  • GM Encouraged By Global Recovery, But Not Interested In 'Short-Term Pop' For Stock: CEO Mary Barra