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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.

Buy a Mosler Twinstar, the V16 Cadillac you almost wanted [w/video]

Cadillac was once famous for opulent, V16 luxury vehicles, but this bizarre 16-cylinder 1999 Eldorado that's for auction on eBay Motors isn't much like its ancestors. Dubbed the TwinStar, this beast features a Northstar V8 with 275 horsepower to drive the front wheels and a second Northstar with 300 hp is in the trunk to spin the rear axle. Each mill has its own four-speed automatic gearbox, and the result is a total of 575 hp of all-wheel drive fury in an incredibly weird package. The TwinStar's interior and exterior certainly don't hide the odd powertrain setup. To fit the engine in the trunk, the builders pushed the rear wheels further back and lengthened the wheelbase. There are also scoops low on each side to funnel air to the V8. Inside, there's a second ignition on the side of the center stack, and a digital instrument cluster replaces the glove box. It's sure to confuse any passenger you can convince to take a ride in this thing. Mosler, the supercar company known for models like the MT900, built five TwinStars, according to the auction. The seller links to the original review by Car and Driver, and the magazine noted that the sensation of the two engines working in tandem was rather odd. However, the TwinStar was a capable performer and ran to 60 in 5 seconds in its test. If you want to start your new year with the oddest vehicle possible, the TwinStar's auction sits at $5,600 with the reserve not met as of this writing, and it ends January 2, 2016, at 8:00 PM ET. If you can't wait that long, the dealer lists the car online for $39,900. There's also a spirited conversation on Bring a Trailer about this automotive oddity.

GM slashes prices in China as sales falter

Buying a vehicle from General Motors' stable of brands might be a lot cheaper in the near future – at least for customers in China. The effort comes as GM hopes to keep sales there growing, and the decision alludes to yet another sign that the Asian country no longer has the booming auto market of past years. GM and its Chinese joint venture partner SAIC are slashing prices by as much as the equivalent to $8,700 on 40 models from Buick, Chevrolet, and Cadillac, according to The Detroit News. Across all of automaker's nameplates, the overall sales dipped in China in April by 0.4 percent to 258,484 vehicles. Among the drops, Buick was down 8.5 percent, and Chevy shrunk 5.6 percent. Caddy's numbers increased 4.6 percent for the month, though. Buick remains a popular brand in the minds of Chinese consumers, but according to The Detroit News domestic automakers there are starting to eat into the dominance of foreign companies in the market. The country remains important for GM, though. Late last year, it outlined a future strategy that included China as a major pillar, including a $14 billion investment to build five new factories and boost sales. News Source: The Detroit NewsImage Credit: Alexander F. Yuan / AP Photo Buick Cadillac Chevrolet GM Car Buying Car Dealers saic