General Motors Corporation (GM), the world’s largest automotive corporation and vehicle manufacturer, has undergone a major transformation with respect to ownership of the corporation’s stock and shares.
Los Angeles-based Capital Research & Management Company, the second largest investor in GM, recently sold 24 percent of its holdings, equivalent to 19.2 million shares. This date was filed with the Securities and Exchange Commission. In addition, San Diego-based Brandes Investment Partners LP, the corporation’s third-largest investor, has also sold 4 percent of its holdings, equivalent to 2.4 million shares.
When asked about GM’s situation, Brenda Rios, a GM spokeswoman, simply said: “It’s natural for investors to periodically rebalance their holdings.” However, she declined to comment further.
Capital Research & Management Company, as well as Brandes Investment Partners LP, dismissed the inquiries simply stating that they do not comment on their investments.
On the one hand, other investors in the corporation have bought more GM shares. Credit Suisse bought 11.5 million shares. Said investor is now the sixth largest investor in the corporation. Fidelity Management & Research also bought 6.8 million shares. Additionally, according to lionshares.com, Franklin Mutual Advisers LLC also purchased 4.6 million shares.
Craig Fitzgerald, an auto industry expert, said the transactions were the result of some investors buying GM shares at a lower price at a profit and others seeing signs of progress in GM’s restructuring plan. Fitzgerald added: “GM, in particular, continues to do some of the key things that it needs to do. There’s no reason to necessarily believe there aren’t more advantages in the short to medium term.”
Kirk Kerkorian’s Tracinda Corporation, GM’s biggest investor, revealed that GM will soon form an alliance with other auto giants, namely Renault SA of France and Nissan Motor Company of Japan. As a basis for this alliance, teams of employees from the three companies came together to carry out studies on their cost and benefits.
While planning such an alliance, GM maintains its good reputation in the automotive sphere. Chevrolet, Buick, Cadillac, GMC, Saturn, and Pontiac auto parts, in addition to their auto counterparts, continue to come out on top.