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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.

Cadillac XT4 crossover to be built in Kansas City

Cadillac's upcoming XT4, a crossover we've previously known as the XT3 in a long series of spy shots of heavily camouflaged mules, will be built at General Motors' assembly plant in Kansas City on the same platform as the Chevrolet Malibu, Bloomberg reports, citing people familiar with the plan. That will give Cadillac another entry in the red-hot luxury crossover segment and, GM hopes, help to reverse a sales slump in the U.S. It'll also breath life into the Kansas City plant that makes the slow-selling Malibu, where GM cut a third shift last year, by sharing the assembly line between the crossover and sedan and defraying costs for each vehicle. The XT4 was known most recently as the XT3, with styling cues based on the Escala concept sedan from 2016. It's slightly smaller than the XT5, Cadillac's top-selling vehicle, and will also augment the full-size Escalade in Cadillac's stable of SUVs when it makes its expected debut later this year. Cadillac last week reported its second-highest-ever sales mark with 356,467 vehicles, an increase of 15.5 percent over 2016. But that mark papers over an 8 percent sales decline in the U.S. to 156,440 vehicles. The luxury brand is on a hot streak in China, where sales jumped 50.8 percent last year to 175,489 units.Related Video: Image Credit: Brian Williams Plants/Manufacturing Cadillac Chevrolet GM Crossover sales cadillac xt5 cadillac xt4 cadillac xt3

GM claims it's first to sell million 30+ mpg vehicles

As we continue to put together all the data for the year-end edition of By The Numbers, General Motors has announced that it sold more than a million vehicles in the US last year that achieved at least 30 miles per gallon on the highway. More impressively, GM managed this feat using multiple strategies including small vehicle size, turbocharged engines and hybrid or plug-in technologies across four brands (Buick, Cadillac, Chevrolet and GMC) accounting for 13 separate models. This number will grow even more in 2013 thanks to cars like the all-electric Spark, the diesel Cruze, the range-extended Cadillac ELR and the Buick Encore compact CUV.
GM's small car sales were up 39 percent last year helping to attain this million-sales mark for 30-mpg models, and almost 40 percent of all GM sales consisted of cars with fuel-efficient I4 engines. In regards to more advanced means of improving fuel economy, GM says that it plans on having 500,000 vehicles with "some form of electrification" on the road by 2017.
Scroll down for the full list of GM's million 30+ mpg cars as well as an informative press release.