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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.

Autoblog Podcast #326

Easter Jeep Safari concepts, Shelby 1000, 2014 Cadillac CTS and Mercedes CLA45 AMG leaks
Episode #326 of the Autoblog Podcast is here, and this week, Dan Roth and Zach Bowman talk about this year's Easter Jeep Safari concepts, the 1,200-horsepower Shelby 1000 and leaked images of the 2014 Cadillac CTS and Mercedes-Benz CLA45 AMG. We wrap with your questions and emails, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Keep reading for our Q&A module for you to scroll through and follow along, too. Thanks for listening!
Autoblog Podcast #326:

Hear the new Cadillac CTS-V torture some tires

The 2016 Cadillac CTS-V seems like the type of wonderful gift that Santa might cook up in his workshop for one extraordinarily good boy or girl. However, the first chance for most people to actually see the super sedan and its carbon fiber pieces in real life is at the 2015 Detroit Auto Show in January. As a stocking stuffer until then, Caddy has released this video highlighting the latest V-Series roasting its tires better than any dinner for the holidays. With the supercharged 6.2-liter V8 from the Chevrolet Corvette Z06 nestled into the CTS-V's engine bay, the Cadillac certainly has quite a bark coming from its exhaust. The mill might be detuned slightly from the 'Vette to 640 horsepower and 630 pound-feet of torque, but that's still plenty for this smoky application. Enjoy this tease of the future V-Series, ahead of the Detroit show. Related Gallery 2016 Cadillac CTS-V View 15 Photos News Source: Cadillac via YouTubeImage Credit: Related images copyright Cadillac Cadillac GM Luxury Performance Videos Sedan