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GM Says Fixing Opel Would Buoy Slumping Shares
CEO Dan Akerson blames General Motors Co.'s sinking stock price on the company's losses in Europe, its huge global pension liabilities and investor concerns about Europe's economy.
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CEO Dan Akerson blames General Motors Co.'s sinking stock price on the company's losses in Europe, its huge global pension liabilities and investor concerns about Europe's economy.
At GM's annual meeting on Tuesday, shareholders griped to Akerson about the stock's 33% plunge to $22 per share since its initial public offering in November 2010.
"First and foremost, we have to fix Europe," Akerson told the investors. GM's money-losing Adam Opel unit is expected to present a restructuring plan to its board late this month. GM is in "constructive" talks with Opel's labor unions about cutting costs, according to Akerson. He says the company hopes to reach an agreement with them soon.
Early this month, GM attacked another drag on its stock price by launching a plan to shrink by about $26 billion its bloated pension obligations to 118,000 U.S. salaried retirees. The company will buy a group annuity from Prudential Insurance Co. of America to cover those pensions. Salaried retirees can choose a lump-sum buyout of their pension or regular monthly payments from the annuity.
Akerson says GM is considering a similar plan for its 400,000 U.S. hourly workers.
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