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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.

Mystery Cadillac coupe concept revealed in patent drawings

We have been reminded once again that when Cadillac designs a coupe, it's usually spectacular. The reminder comes in the form of a patent drawing filing that was previously reported on by Jalopnik. In the filing are shots of the two-door from just about every angle, and there's not a bad one in the bunch. Unfortunately, there isn't really any other information about the car in the patent, so the car remains a mystery in that regard. Still, there's a fair amount to be gleaned from the images. It certainly looks sportier than most recent Cadillac concepts. It has a fastback roof and a short deck lid. The rear bumper has a diffuser design fitted to it. The rear fenders are very wide. It has large auxiliary grilles on each side of the center one, and the way the taillights are designed seem to hint at extractor vents. The overall proportions even look a bit like those of the Camaro, but possibly a little larger. The car also looks like it's probably a concept. The side mirror stalks are far too skinny to actually be production units. The big diffuser and center exhaust, plus those rear extractor vent designs seem a little much for a production model, too. The headlights are also a little on the small side. Being a concept (probably), we're a little worried. We really want to see this thing come to market, but Cadillac has a bad track record of showing beautiful concepts that never make it to production, even when they aren't particularly over-the-top. The Elmiraj and Ciel are two that come to mind. The former was a coupe, too, and was elegant and grounded. We never got a production version of either. We did see some styling inspiration from the Elmiraj on the ATS and CTS, but they never quite captured the concept's beauty. Then again, when Cadillac has managed to bring a recent concept to production, the results haven't great. The Converj concept became the ELR, and while the styling came through fine, it was hampered by an uninspiring powertrain and an excruciating price tag. But hey, Cadillac could always prove us wrong. And we would like them to. Related Video: Featured Gallery Cadillac Coupe Patent Drawings News Source: U.S. Patent and Trademark OfficeImage Credit: U.S. Patent and Trademark Office Cadillac Coupe Concept Cars Luxury

Cadillac to Corvette: You’re not getting our twin-turbo V8 engine

NEW YORK — Cadillac president Johan de Nysschen bluntly shot down rumors his brand's powerful twin-turbo V8 is also headed for the Chevy Corvette. Speaking Wednesday at the New York Auto Show, he said: "Just quit the speculation it's headed for Corvette. It's not." The 4.2-liter V8 cranks out 550 horsepower and 627 pound-feet of torque in the Cadillac CT6 V-Sport, which debuted at the show. With that kind of performance and the fact the engine will be hand-built at the General Motors Performance Build Center in Bowling Green, Ky. — at the Corvette factory — led enthusiasts to presume the engine would eventually be under the Vette's hood. De Nysschen, however, argued the engine will also focus on levels of refinement, rather than the Corvette's raw, visceral dynamic. "I think Corvette wants a different kind of character," he said. In fact, the V8 is set to be only for Cadillacs, de Nysschen said, giving the luxury brand its first exclusive engine in years. "It's a matter of being a thoroughbred luxury car," he said. "It's really only a luxury brand that could recoup this [development] cost." A version of the engine making 500 hp and 553 lb-ft will also be used in other Cadillac models. De Nysschen declined say which vehicle will get the engine next. The new V8 uses a "Hot V" configuration more common to German performance cars, and has direct injection, electronic wastegate control, active-fuel management and stop-start technology. It teams with a 10-speed automatic transmission and fits either rear- or all-wheel drive systems. With a new mid-engine Corvette — and potentially more versions of the existing generation Vette — on the horizon, speculation pointed to the sports car getting a twin-turbo powerplant of some sort (V6 rumors also have floated), and the Cadillac 4.2-liter seemed to fit on paper. According to de Nysschen, that won't be the case. Still, even though the Cadillac boss says this specific engine won't go to Corvette, it's hard to not think some version of this engine, perhaps in a different displacement, could find its way under the hood of the Vette at some point in the future. Related Video: