Vote of Confidence: GM Chief Dan Akerson Buys $500,000 Worth of GM Stock

General Motors’ chief executive Dan Akerson has invested around $500,000 in GM with a recent stock purchase. The move comes after the CEO promised that GM would be “relentless in attacking the issues that hold [it] back.”

Akerson bought about $940,000 in GM stock early this year as a vote of confidence in his company’s future success. With his recent purchase of 25,000 GM shares at $20.35 per share, Akerson’s stock holdings amount to 272,828 shares – currently worth roughly $5.6 million. Akerson was reportedly frustrated with the news of GM’s second quarter results, telling Automotive News, “That’s not acceptable with this leadership team, and we’re going to underscore that fact with our teams to keep everyone on point.”

In the second quarter of 2012, GM posted net profits of $1.49 billion, down 41 percent from the same period last year. As we previously reported, GM’s stock has been affected by its European operations, which continue to flounder. Analysts suggest repeated losses in Europe will keep GM shares back, and that investors may not be so eager to follow Akerson’s lead despite the shares’ current low price. Once trucks like the new and money-making Chevrolet Silverado start rolling into dealerships, GM’s profitability picture might change.

Source: Automotive News (Subscription required)

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