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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.

Sinkhole Opens Up In National Corvette Museum, Swallows Eight Cars

More cars are being moved inside the National Corvette Museum in Bowling Green, Ky. to avoid falling down the same sinkhole that swallowed eight classic sports cars early this morning, Autoblog reported. Museum officials said the hole was discovered when motion sensors activated around 5:45 a.m. The rescue mission can be viewed on the museum's live feed cameras, which weren't working after the sinkhole emerged. A 1993 ZR-1 Spyder and a 2009 ZR1 "Blue Devil," both on loan from General Motors, were among the cars that fell into the sinkhole. The museum owned the other affected Corvettes, which included a 1963 Corvette, a 1984 PPG Pace Car and the 1 millionth Corvette ever produced. The state of the cars at the bottom of the hole isn't known, but trial lawyer and sinkhole expert Ted Corless said the cars may be a total loss for the museum and GM. "Most states, including Kentucky, exclude damage caused by sinkhole activity," he said. "There will be, in all likelihood, a claim made, but a lot of policies would specifically exclude these kinds of damages." Corless has 15 years experience dealing with sinkholes. He said that typically neither the building, nor the cars themselves are protected under their insurance policies. "I would have to say, more likely then not, they're going to have an uninsured loss measured in the hundreds of thousands of dollars." The museum is closed Wednesday while a structural engineer assesses the damage. Related Gallery 2014 Chevrolet Corvette Stingray Test Drive View 9 Photos Related Gallery 2014 Chevrolet Corvette Stingray Test Drive View 9 Photos Weird Car News Chevrolet GM corvette

Chevy updates Silverado HD with new towing equipment

Enamored by the updated Chevy Silverado released just the other day, but need something a little more heavy duty? Chevy isn't going to keep you around waiting for long, as it has now revealed a new Silverado HD as well. While the new Silverado 1500-series has been distinguished over the outgoing version principally by its revised styling, the updated Silverado HD is more about its enhanced equipment. It's got a new Digital Steering Assist system (on some models) designed to enable easier and safer towing. There's a new gooseneck/5th-wheel trailer prep package that enables Chevy's new heavy duty truck to tow as much as 23,200 pounds. And the interior equipment is augmented as well by a new MyLink system with seven- or available eight-inch display, Apple CarPlay and Android Auto capability, wireless phone charging and more. Buyers will be able to choose between two versions (2500HD and 3500HD), four trim levels, three cab sizes, two cargo box lengths, and numerous powertrain and drivetrain configurations for a staggering array of combinations. There'll also be several special editions and packages, like the Z71 for off-road use and Custom Sport Edition for a sleeker look, as well as chassis cab and CNG versions. Scope out the full details in the press release below and the fresh batch of images in the gallery above. Related Video: 2016 Chevy Silverado HD Offers Digital Steering Assist Control-enhancing system, phone integration and 5th wheel package lead updates 2015-09-24 DETROIT – Chevrolet Silverado HD trucks are engineered to make the toughest jobs easier, and new technologies for 2016 complement features such as integrated cruise control, powertrain grade braking and diesel exhaust braking to enhance control. New Digital Steering Assist power steering on some double cab and crew cab models helps make hauling and trailering easier and more confident, with electronic controls that enhance road holding and stability on the highway – particularly on crowned roads – regardless of whether the truck is loaded. It also offers greater responsiveness and an improved steering feel. Digital Steering Assist is not available on Work Truck models or regular cab. There's also a new Gooseneck/5th Wheel Trailering Prep Package, with a spray-in bedliner, that makes Silverado HD models ready to tow larger trailers right from the factory.