The freight strain sidetracks Carolina.

• Position: Decline in stock prices of Carolina Freight Carriers Corp.

With analysts starting to draw comparisons between Carolina Freight Carriers Corp. and General Motors, CEO Ken Mayhew may be feeling as if he's in the hot seat rather than the driver's seat.

Like GM, Cherryville-based Carolina Freight is struggling despite investing millions to improve its operations. Like GM, Carolina Freight's costs are much higher than many competitors'. And like GM, some Carolina Freight stockholders are getting tired of being told, "Just wait till the economy turns the corner."

Trading in the $12-$14 range in November, Carolina Freight stock was near the bottom of its five-year range of $10 to $40. An investor who bought the stock in November 1987 would have lost 38% of his money. Earnings in 1992 were likely to dip 34%, to $990,000, or 15 cents a share.

"GM was an underperforming entity in a weak industry," PaineWebber analyst Anthony Hatch says. "So is Carolina Freight. Who knows? The first quarter or two after the economy begins a solid recovery will tell."

Mayhew, who succeeded Ken Younger as CEO in 1989, won't say if his future is in jeopardy. But he pleads with observers to look at the long term. "Trucking is survival of the fittest," he says. "The mere fact we survived means we're one of the fittest. Of the 50 largest trucking companies 25 years ago, seven are left in business. The survivors are tough competitors."

Most outsiders praise Mayhew's leadership. Carolina Freight's 95% on-time record earned it a second Malcolm Baldrige National Quality Award nomination in 1992 and, in November, an honor from the N.C...