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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 CT6 to be lighter than CTS, get PHEV model

Cadillac is suddenly one of the most talked about automakers in the US with Johan de Nysschen taking control. The brand claims that it eventually wants to become, once again, the standard of the world. One of the first vehicles to actually prove whether that's possible is its upcoming CT6 flagship sedan. We still don't know what the production version looks like undisguised, but other important details are falling into place. The latest big news sheds some light on the Caddy's powertrain and some estimates of its weight and size.
General Motors product chief Mark Reuss dropped the details at the automaker's Global Business Conference. According to The Detroit News, he revealed that the CT6 would use a twin-turbocharged, 3.0-liter six-cylinder engine with an eight-speed automatic transmission, and a plug-in hybrid would be an additional option. He reportedly claimed it would be the most "powerful six-cylinder gas engine in the segment" and said the hybrid could get around 70 miles per gallon.
Reuss also revealed that the CT6 would be about 53 pounds lighter than the current CTS, despite being about 8 inches longer, according to The Detroit News. If that's the case, the new flagship is about 203.5-inches long, which is 1.5-inches more than the XTS.

Here's how Cadillac made its Magnetic Ride Control suspension quicker and smarter

Bugatti makes the world's fastest car, but Cadillac claims it has developed the world's fastest suspension. Its fourth-generation Magnetic Ride Control technology receives hardware and software tweaks to deliver a more comfortable ride and sharper handling. It's offered on some variants of the CT4, CT5 and the Escalade. Introduced in 2002 on the Seville STS, this self-adjusting suspension is not as complicated as it might sound. It relies primarily on electromagnets that emit a magnetic field, and a magnetorheological fluid whose viscosity changes depending on the strength of the magnetic force. Sensors scan the road up to 1,000 times per second and send the information they gather to the electromagnets, which then alter their magnetic field as needed to modify the fluid's viscosity. The fluid is in the shocks, so making it thicker returns a firmer ride, and vice versa. In simpler terms, Magnetic Ride Control leverages chemistry and physics to make the ride sporty, comfortable, or somewhere in between -- all in the blink of an eye. By reacting to the changing magnetic field, the fluid-filled shocks filter out road imperfections and maximize tire contact with the road to deliver more precise handling. Cadillac began developing the fourth-generation system by improving the hardware. The in-wheel accelerometers are more accurate than before, the inertial measurement unit is more precise, and the damper fluid formula was changed for quicker response times and a smoother ride. Engineers then turned their attention to the system's software. They notably gave the sensors the ability to process a wider selection of input and output signals, which translates to a wider spread between comfort and sport. And, they made the response time up to 45-percent quicker. All told, the fourth-generation Magnetic Ride Control technology performs better under heavy braking and hard cornering, it delivers more consistent performance, and it reads the road more accurately. Cadillac proudly notes these are the most comprehensive updates it has made to the system in nearly two decades. Magnetic Ride Control comes standard on the 2021 CT4-V and the 2021 CT5-V, and it's bundled into the CT5's V Performance package, which also includes a mechanical limited-slip differential. It's also standard on the Sport and Platinum variants of the 2021 Escalade, and it's part of the Premium Luxury trim's Performance package.