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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.

Would you pay $17 a month to give your older Ford connectivity?

When it was first introduced in 2007, there was nothing like the original Ford Sync system, since it allowed car owners to connect and use a portable device better than anything that came before it. And because it was a brought-in/tethered and software-based system, Sync leveraged a device's connectivity and was easily updated. It took competitors awhile to catch up: Toyota Entune wasn't available until 2011, and Chevy MyLink didn't roll out until 2012. But now Ford is the one playing catchup since it stuck with the brought-in strategy while most other automakers were quicker to add connectivity via an embedded cellular modem. Ford initially installed 2G/3G modems in its small fleet of electric and plug-in electric vehicles starting in 2012 so that owners could keep tabs on charging. Embedded connectivity came to Lincoln in 2014, and Ford began adding onboard 4G LTE via Sync Connect to select cars starting with the Escape in 2015. To get more cars connected more quickly, last week the automaker rolled out its FordPass SmartLink solution that plugs into the OBD port of 2010 to 2017 model year vehicles. This lets owners retroactively get onboard Wi-Fi, set up a "geo-fence" to keep tabs on a car's location, receive vehicle health reports and allows remote engine starting and door locking/unlocking using a smartphone app, among other features. But to connect older Ford vehicles will cost owners $16.99 a month for two years, not including installation. Ford throws in 1 GB of data or a 30-day trial, whichever comes first, after which owners have to add the vehicle to their Verizon shared data plan, which supplies connectivity for SmartLink, or establish a new account. (Disclosure: Autoblog is owned by Verizon.) By comparison, GM's 4G LTE data plans start at $10 a month for 200 MB and goes up to $30 for 3 GB, and owners can also add a car to an AT&T shared-data plan. But OnStar doesn't have a separate monthly subscription for the embedded modem or an installation charge, and standard features via the RemoteLink Mobile App are free for the first five years of ownership. FCA's Uconnect Access service also uses an embedded modem to provide similar telematics features for $20 per month following a free one-year trial, while a la carte in-car Wi-Fi is offered for $10 per day, $20 per week or $35 per month.

Stop-start standard in four-cylinder 2015 Chevrolet Impala

Chevrolet has announced that it will include stop-start technology as standard in the entry level 2015 Impala. The result is a nearly five-percent improvement in city fuel economy, also known as one mile per gallon, up to 25 mpg, combined. The 3.6-liter V-6 Impala will not feature stop-start. The 2015 Impala comes equipped with Chevrolet's 2.5-liter Ecotec four-cylinder engine, which will also offer 22 mpg in the city, and 31 on the highway. The 3.6-liter V-6 Impala will not feature stop-start and the mild-hybrid eAssist model from the 2014 MY, which got 29/25/35 combined/city/highway mpg, has been discontinued. Chevrolet spokesman Chad Lyons told Green Car Reports that not even one percent of the 2014 Impalas purchased were the Eco model. So Chevy is trying something different. With a seamless driving experience in mind, the new Impala's stop-start tech features software that governs under what conditions the feature will activate. The engine won't shut off if the car has not reached a speed of six miles per hour, so the start-stop won't be cycling during traffic jams. It can also fire the starter even if the engine has not come to a full stop, which quickens reaction time, particularly in instances of what Chevrolet calls "change-of-mind events." The stop-start function uses information about cabin temperature and humidity as well as battery charge to help determine whether or not to shut off the engine. The 2015 Impala has been engineered to reduce NVH, which will also help create a smoother stop-start experience for occupants, Chevy says. Motor mounts have been updated, and a burlier starter motor will help restart the engine after a stop. The Impala follows the 2014 Malibu as Chevrolet's second vehicle to feature stop-start tech. The four-cylinder model currently makes up over 30 percent of Impala sales. The 2015 Impala will be available beginning this summer, with a base MSRP of $27,735 (including destination charges). And while one MPG isn't a huge difference, neither is the price increase of just $50 for a bit of eco-minded innovation. Read on for more details in the press release below. Chevrolet Makes Stop/Start Standard in 2015 Impala Technology improves city fuel economy by 5 percent 2014-05-22 DETROIT – Stop/start technology will be standard on the 2015 Impala base 2.5-liter ECOTEC® engine, an addition that improves the vehicle's city fuel economy by nearly 5 percent, or one mile per gallon.