Detroit - An investor group demand that General Motors give back more of its $25bn cash hoard confronts chief executive Mary Barra with a challenge to her plans for building the company and rewarding shareholders.
Barra and GM's chief financial officer Chuck Stevens have signalled they will recommend returning more of the cash once the Detroit automaker knows how much it will have to spend to resolve legal issues related to the company's recalls of millions of cars equipped with defective ignition switches. That includes a US justice department criminal investigation.
Several shareholders contacted by Reuters said they agree with former US auto task force member Harry Wilson and his hedge fund partners that GM has more cash than it needs. GM exited bankruptcy in 2009 with little debt, and has since profited as demand for cars and trucks in the US has roared back from the 2008-2009 recession.