2001 Cadillac Deville on 2040-cars

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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's Euro reboot may have implications for US models, sales

Firmly on the comeback trail in the US, Cadillac is still trying to get out of the starting blocks in Europe. At the Geneva Motor Show in March, Cadillac' senior execs revealed plans to grow the brand's presence in a luxury market dominated by the big three German marques, Audi, BMW and Mercedes-Benz.
GM President Dan Ammann says he sees "enormous" potential for Cadillac globally.
Over the past 20 years, the General Motors premium nameplate has tried and failed multiple times to break into the European market. This time around, Cadillac recognizes that progress will be modest at best, and depends on specific changes to models, some of which may impact the brand's US lineup. Planned new sales tactics in Europe may also impact the way Cadillac does business on this side of the pond.

Junkyard Gem: 1969 Cadillac Coupe DeVille

The Cadillac Division was riding high in 1969, with sales numbers far surpassing those of Lincoln and Imperial. A few more years remained before fuel prices would go crazy, and prosperous Americans knew that a sleek DeVille or Eldorado gave them bragging rights at the country club. Here's a thoroughly used-up '69 Coupe DeVille, finally at the end of its journey and residing in a self-service wrecking yard in Denver, Colo. This inspection certificate shows that the car lived in Louisiana a decade ago. Since this is the sort of pervasive rust that occurs in places much wetter than arid High Plains Colorado, we can assume that this DeVille spent many years in the land of gumbo and alligators. The decklid sports Fleetwood badging and a Rickenbaugh Cadillac emblem, but Cadillac didn't make two-door Fleetwoods in 1969. Perhaps a Colorado-sold Fleetwood donated its decklid to replace a rust-ravaged lid on this car. Actually, there's a good chance it was purchased at this very yard. The once-opulent interior has suffered greatly over the decades, with the reek of mildewed carpeting and irradiated leather giving it That Hooptie Car Smell. Try to picture what this scene looked like in happier days, a half-century ago. The 1969 Cadillac V8 engine displaced a mighty 472 cubic inches (that's 7.8 liters to those of you living under the cruel knout of the metric system) and delivered a gross 375 horsepower and 525 lb-ft of torque. Scaling in at 4,595 pounds (about a half-ton less than a new Escalade), the DeVille needed that power to keep up with those cheap-but-V8-equipped Chevy Chevelles. For 1970, Cadillac would stroke this engine to a staggering 500 cubic inches for Eldorado buyers. This engine family lasted through 1984, after which it was replaced by the much-loathed High Technology V8. The build quality and snob appeal of the 1969 Cadillacs kept them on the road for decades after most of their peers got crushed, but this one was just too far gone to be worth restoring. Featured Gallery Junked 1969 Cadillac Coupe DeVille View 21 Photos Auto News Cadillac Automotive History Classics