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Weekly Recap: Cadillac's crossover blitz hinges on the 2017 XT5

Cadillac's aggressive new cadence of crossovers begins next spring with the arrival of the 2017 XT5, the first of four new utility vehicles that Cadillac will unleash in a bid to win more customers and revitalize its image. The XT5 replaces the aging SRX, and it's the first SUV to use the brand's new naming scheme (cars will use the corresponding CT prefix). Billed as the cornerstone of Cadillac's remade crossover lineup, the XT5 will join showrooms right after Caddy's new flagship, the CT6 sedan. It will be on display next week at the Los Angeles auto show after first appearing this month at the Dubai motor show. "It's pivotal to our ongoing growth, which is why we've developed XT5 from the inside out to provide customers more space, more technology, more luxury, and more efficiency," Cadillac president Johan de Nysschen said in a statement. "Pivotal" is almost understating the XT5 and the red-hot midsize crossover segment. The SRX is Cadillac's top seller in 2015, posting a 25-percent increase and its 56,732 units (up 25 percent) are more than one third of the brand's 141,090 sales this year. Yes, the totals have been partially incentive-fueled, and Cadillac put an average of $7,225 on the SRX's hood in October, according to TrueCar data. Still, it's an impressive performance for any vehicle, especially one that's had few major changes since the new generation launched as a 2010 model. "The SRX has been selling very well, given how late in the lifecycle it is," AutoPacific product analysis manager Dave Sullivan told Autoblog. It outsold the all-new MKX last month and really only trails the Lexus RX. This is the volume model for Cadillac and dealers need this to be a grand slam, not just a home run." Cadillac is adamant the XT5 isn't an SRX re-skin. It has a new chassis, more interior room, and adds features like Apple CarPlay and Android Auto. Thanks to a new structure, the XT5 sheds 278 pounds compared with its predecessor, which should improve fuel economy and driving character. The crossover uses General Motors' latest 3.6-liter V6 rated at 310 horsepower and 270 pound-feet of torque, and it is fortified with variable-valve timing, cylinder-deactivation, and stop-start features. The V6 will team with an eight-speed automatic transmission and a twin-clutch all-wheel-drive system than can summon all of the torque distribution to the front or rear axles. Cadillac will also sell a 2.0-liter turbo four-cylinder model in China.

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 plans upgrades to its Super Cruise hands-free system

Not content to let Tesla hog the spotlight with lofty claims about its autonomous driving capabilities, Cadillac plans major upgrades to its Super Cruise automated driving system starting next year, when the technology starts rolling out in more models. "The system that we have today, we continue to upgrade," Brandon Vivian, Cadillac's executive chief engineer, told The Verge. 'We have over-the-air re-flash capability, and you'll continue to see us add features and capabilities to Super Cruise going forward." A fellow top Cadillac engineer told the outlet they would not share specifics but said "We want to innovate" as competitors also make advances in self-driving technology. The news comes as Elon Musk says Tesla will launch a driverless robotaxi service in some U.S. cities next year, with "over a million cars with full self-driving, software, everything." The audacious claim hinges on a new Samsung microchip for self-driving vehicles. Last year, Tesla rolled out Navigate on Autopilot, which allows vehicles to change lanes, take exit ramps and choose the correct highway interchange and exit. At the New York International Auto Show, Cadillac announced that it will equip the forthcoming 2020 CT5 sedan with Super Cruise, though not initially. The brand plans to roll out a new model equipped with Super Cruise every six months starting in 2020 and going through the end of 2021, meaning four new models with the technology in two years. Super Cruise previously has been offered only on the CT6 Platinum, and as an option on other CT6 trim levels, along with a three-year OnStar package. It uses cameras, lidar mapping and radar, plus an infrared camera mounted atop the steering column to make sure the driver isn't nodding off, looking away for too long or climbing into the back seat. There's also an LED light bar on the steering wheel and Super Cruise icon on the instrument panel to let drivers know when the system is ready, not ready and ready to deactivate. But the system can't switch lanes and only works on around 130,000 miles of divided highways that GM has mapped with lidar-equipped vehicles. Vivian said the Super Cruise setup in the CT5 will be largely the same as in the CT6 and likened it to "a half step in between" a full next generation of the technology. GM also plans to eventually roll out Super Cruise to its entire U.S. lineup following its introduction in all Cadillac models. Autoblog named Super Cruise the 2019 Technology of the Year winner.