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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 ATS-V shares track time and new face with CTS-V sibling

It's been about eight months since we last heard anything on the eagerly anticipated Cadillac ATS-V, meaning it was high time a new batch of photos arrived of the twin-turbocharged, V6-powered sedan.
This latest round includes a shot of the hot ATS-V alongside the upcoming CTS-V, allowing us to glimpse through the camouflage and spot the family resemblance between the two über sedans. According to our spies, this is the first time we've gotten a look at the ATS-V's fascia without a nose bra to obscure larger details. This isn't the first time we've seen a vertically slated grille on an in-development Cadillac V car, although it is the first time we've seen it on the ATS-V. Aside from the main grille, the shapes of the sportier front fascia of the ATS-V tie in nicely with its big brother. We are rather curious about the hood on the ATS-V. It's difficult to tell from these images, but it looks like there may be some vents up there that may be meant to improve cooling to the alleged 425-horsepower engine.
Other details that we can see include swollen fenders and larger wheels that hide amplified brakes. The rear of the car remains heavily obscured by camo, with the sole details of note being the quad exhausts, which we've spotted on previous ATS-V prototypes.

Cadillac's Johan de Nysschen clarifies a few points on the brand's future

Last week, Motor Trend ran coverage on a journo roundtable with Cadillac president Johan de Nysschen. During the roundtable, de Nysschen cited a few reasons for the decline in sedan sales, including gas prices, "young consumers" — read, millennials — less interested in driving dynamics than lifestyle accessories, and the state of U.S. infrastructure. Jalopnik homed in on the last two reasons, and those became the story, including here in our post on the roundtable. So de Nysschen called Jalopnik to add more context. The original reaction pieces painted de Nysschen's rationales as an excuse for sporty sedans not selling well, when the issue is Cadillac's sporty sedans not selling well. His main clarification: "I wasn't advocating the idea that the world is black and white, that if you're a young buyer a millennial or a teenager that you don't enjoy driving." On that note, it would be ridiculous to deny millennial and sedan-segment bugbears; de Nysschen has market research and the industry-wide, rabbit-like crossover breeding program to back him up. Yet even as he touted the success of the XT5, noting that it's "the third-best-selling luxury nameplate in the U.S. after the Lexus RX, and the Mercedes C-Class," he could add, "But the irony is not lost on me that the C-Class is a sedan." The circumstances laid out in the follow-up piece inject more likely color into the situation: the brand's onetime, singleminded focus on the U.S., followed by a singleminded focus on China that left the U.S. market wanting for attention. We could add to that: years of lackluster products and awful attempts at volume and brand engineering under the old GM at the same time that downsized premium luxury products, crossovers, and SUVs began their rocketship trajectories; trying to live off the Escalade success; and the carmaker's desire not to offend its older, traditional buyers while concurrently wooing "coastal influencers." De Nysschen also acknowledged that Cadillac interiors aren't where they need to be, saying, "We recognize that's where we want to improve." The result, as de Nysschen put it, "We're playing with the hand that we've been dealt.