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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 XT5 confirmed for 2016 as next-gen SRX

Cadillac's entire lineup of 2016 models gets a major infotainment upgrade this summer with improvements to CUE and integration with Apple CarPlay and Android Auto. There's one major exception for now, though. The SRX retains the old system until its all-new generation, called the XT5, debuts early in the 2016 calendar year. "When we transition into all new product lines, we will evolve the naming convention to suit the new classification we have announced. So SRX becomes XT5 next year," company spokesman David Caldwell said in an email to Autoblog. Earlier spy shots and rumors suggest the XT5 might be offered with a turbocharged four-cylinder and naturally aspirated six-cylinder engines, plus a nine-speed automatic transmission. For the rest of Cadillac's models, CarPlay arrives with the launch of the 2016 vehicles, and Android Auto joins later. Using either of them requires a connection via USB, and they add a new projection icon on the CUE screen. Once activated, both systems integrate with driver's phone and incorporate features like navigation, music, and contacts. They can also accept voice commands. Even for those that don't want to hook up a smartphone, CUE should work better thanks to a more powerful processor. Start-up times for the infotainment system are expected to be faster, and Cadillac claims that it's also more responsive for voice recognition, navigation searches, and media. The navigation interface is simplified, as well. The Escalade, CTS, and XTS can now be ordered with a 360-degree camera system to display on the screen. Cadillac Enhances Phone Integration for 2016 Models with Apple CarPlay, CUE Upgrades APPLE CARPLAY AVAILABLE AT LAUNCH; ANDROID AUTO COMING LATER IN MODEL YEAR 2015-06-09 NEW YORK – Cadillac's 2016 model year products will feature enhanced connectivity and control, including the addition of Apple CarPlay and Android Auto, the predominant new systems for in-car phone integration. These additions are part of a broader enhancement of CUE, Cadillac's user experience, with new features and a faster, streamlined operation. Apple CarPlay will debut in 2016 Cadillac models featuring CUE's 8-in multi-touch screen except the SRX Crossover, a model that will move to an all-new generation in early 2016. Android Auto is expected to be phased into 2016 production at a later date. The 2016 model year will begin this summer.

GM admits Cadillac ELR no real competition for Tesla Model S

Last year, then-CEO of General Motors, Dan Akerson, made it clear that the company lookouts at the Ren Cen had California automaker Tesla in their sights. "If you want to compete head-to-head with Tesla, and we ultimately will, you want to do it with a Cadillac," he said. So, given the fact that the Cadillac ELR has a plug and sells for roughly the same price at the Tesla Model S ($75,000 vs $69,900, before incentives) and that Cadillac doesn't have any other electric vehicle on the horizon, you'd be forgiven if you thought that the way that Akerson wanted to challenge Tesla's EV success was with the ELR. Well, you'd apparently be wrong. "The ELR is a different car, it's a different price point. It's way-different technology." - GM's Mark Reuss Speaking yesterday in Detroit, GM's head of global product development, Mark Reuss, admitted that the ELR is not the Tesla competitor that Akerson promised. "People like to say the ELR is [competition for the Model S], but it's really not. It's a different car, it's a different price point. It's way-different technology." So, if we follow that logic to conclusion with Akerson's quote from last year, then the only way that Cadillac can eventually compete with Tesla is with a pure electric car, and that seems an outside chance, at best, for the foreseeable future. Through the end of July, Cadillac has sold 578 ELRs since it went on sale earlier this year. Tesla doesn't break out monthly US sales, but has sold 15,114 Model S EVs around the world in the first six months of 2014. For his part, Tesla CEO Elon Musk has already said that GM is headed down the wrong path with plug-in hybrids like the ELR or the Chevy Volt. Speaking about the Volt last year, Musk said, Chevy "sort of created something that's a bit of amphibian," which resulted in a car that's, "Okay but not great."