Just when I thought GM was running on empty, it appears that the Barron’s bounce is alive and well. In an otherwise lousy day in the stock market, shares of General Motors (GM) bucked the trend and rose 2% after the automaker was the subject of the weekend article, “Buy GM.”

The theme of the article was that even though the company faces many headwinds, patient, bold investors will ultimately be rewarded over time. It cites a shift to more fuel-efficient vehicles, including an electric model (the Chevrolet Volt) which CEO Rick Wagoner has gone on record as saying will run at lest 40 miles on a single charge without using a drop of gasoline. Other cost-cutting measures include a new contract with the United Auto Workers which should save GM $4 billion to $5 billion per year beginning in 2010.

Given the pullback in auto stocks, buying GM at depressed makes sense on a Rational level. But let’s take another quick look under the hood:

• GM failed to properly manage inventory in the face of rising fuel costs. Indeed, the company missed the boat in predicting consumer behavior even though foreign competitors like Toyota (TM) recognized and invested in the trend toward alternative energy.

• GM announced last week that it was closing 4 of its plants as it is now forced to change on an accelerated basis. An unfortunate move no company wants to make, but a necessary one. It will save the company $1 billion annually.

• GM’s balance sheet appears to be able to withstand the pain with approximately $31 billion of cash and credit line availability.

• Yes, shares have dropped 60% since October of last year. GM’s SUV-heavy North American operation (the company’s biggest unit) is leaking oil as light trucks sink in popularity. However, some analysts think that its share price could rise to $30 (or maybe as much as $45) once the effects of GMs downsizing trickles down to the company’s bottom line somewhere around 2010. Hopefully by then, the economy will be gaining speed with increased consumer confidence and a rebound in the housing market.

• GM’s depressed share price creates a dividend yield of more than 5%–paying investors to sit and simply wait for GM to turn the corner and more importantly, turn a profit.

Time for a Test Drive?

Is it time to take GM for a test drive? The price is certainly right. With the company’s engine fine tuned, investors might be impressed with how the stock handles any inevitable bumps in the road moving forward. GM is a buy.