2011 Cadillac Cts V Coupe 2-door 6.2l on 2040-cars

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Frustrated GM investors ask what more Mary Barra can do

DETROIT — General Motors Co Chief Executive Mary Barra has transformed the No. 1 U.S. automaker in her almost five years in charge, but that is still not enough to satisfy investors. Ahead of third-quarter results due on Oct. 31, GM shares are trading about 6 percent below the $33 per share price at which they launched in 2010 in a post-bankruptcy initial public offering. The Detroit carmaker's stock is down 22 percent since Barra took over in January 2014. After hitting an all-time high of $46.48 on Oct. 24, 2017, the shares have declined 33 percent. In the same period, the Standard & Poor's 500 index has climbed 7.8 percent. Several shareholders contacted by Reuters said GM could face a third major action by activist shareholders in less than four years if the share price does not improve. "I've been expecting it," said John Levin, chairman of Levin Capital Strategies. "It just seems a tempting morsel to somebody." Levin's firm owns more than seven million GM shares. Barra has guided the company through the settlement of a federal criminal probe of a mishandled safety recall, sold off money-losing European operations, and returned $25 billion to shareholders through dividends and stock buybacks from 2012 through 2017. GM declined to comment for this story, but the company's executives privately express frustration with the market's reluctance to see it as anything more than a manufacturer tied mainly to auto market sales cycles. GM's profitable North American truck and SUV business and its money-making China operations are valued at just $14 billion, excluding the value of GM's stake in its $14.6 billion Cruise automated vehicle business and its cash reserves from its $44 billion market capitalization. The recent slump in the Chinese market, GM's largest, and plateauing U.S. demand are ratcheting up the pressure. GM is one of the few global automakers without a founding family or a government to serve as a bulwark against corporate raiders. In 2015, a group led by investor Harry Wilson pressed GM to launch a $5 billion share buyback, and commit to what is now an $18 billion ceiling on the level of cash the company would hold. In 2017, GM fended off a call by hedge fund manager David Einhorn to split its common stock shares into two classes. Einhorn, whose firm still owned more than 21 million shares at the end of June, declined to comment about GM's stock price. Other investors said there were no clear alternatives to Barra's approach.

GM recalls 2014 Cadillac CTS recall

No, that headline isn't a typo - General Motors has reportedly issued a recall for one of its own recalls. The recall of a recall affects the recall of the 2014 Cadillac CTS, which wasn't supposed to be recalled. Except that the 2014 CTS was supposed to be recalled. Oh no, now we've gone cross-eyed.
Allow us to explain. The redesigned, third-generation CTS Sedan does not feature a faulty ignition switch, while the 2014 CTS Coupe and Wagon, which are based on the second-gen car, do. And as it turns out, there are only 264 of those vehicles included in last week's 8.2-million-unit, ignition-switch recall. Model year 2003 to 2013 CTS Sedans, Coupes and Wagons are still covered.
It's not entirely clear how this, frankly, colossal mistake was made, although we're betting GM is rapidly trying to get to the bottom of this embarrassing issue. Regardless, let's just take what solace we can in there being one less vehicle that GM has recalled this year.

Cadillac's XT6 is not, for better or worse, a mini Escalade

In its latest attempt at reinvention, Cadillac has created a trio of admirable sedans — the ATS, CTS, and CT6 — cars that challenge or beat the competition on their own terms, and do so with audacious exterior styling rendered in a distinctly American idiom. But American customers have been ditching cars in favor of high-riding crossovers, and what Cadillac has not had up until recently is a suite of appropriately (or bizarrely) sized crossovers to offer potential consumers, something competitors have been deploying for years or even decades. And so the new, full-size(ish) three-row Cadillac XT6, unveiled officially last week at an event in Detroit, is intended to help address the premier domestic automotive luxury brand's current product shortcomings. "I guess we had so many priorities and had to decide what's the most important thing," says Andrew Smith, Cadillac's executive director of design. "We decided to approach this one from an interior perspective, to do things like provide ease of use for owners, upgrade the infotainment, and allow time for ourselves to learn lessons from the launch of XT4." The XT6 doesn't exactly break any new ground within the segment, but that's not necessarily a criticism. Though huge from a sales perspective, the two-box crossover category is not the industry's leader in beauty or innovation. Still, Caddy's most recent previous crossover, the size-Small XT4, managed to create handsome proportions and a premium appearance at first glance. The XT6 doesn't feel quite so ambitious or coherent, with a front end that is at once sneering and soft, a lengthy flank that feints at muscularity without delivering, and a rather abrupt tailgate that blends the rectilinear and the anodyne. Maybe consumers won't notice? "Our biggest challenge was giving the vehicle a character that works on this scale and platform," says Smith. "We want to make sure all of our cars feel different. We didn't want it to be a mini Escalade. No one wants a mini anything. But we wanted to give it Escalade presence, but in scale. So it's this combination of nice, and aggressive. I'm convinced we will sell more than we think we'll sell." Maybe he's right, and we definitely don't see this vehicle cannibalizing sales of the Escalade. People who want a bold Cadillac can still get that one, and will have a brand new option later this year, we expect, when a new Escalade is released.