Auto blog

Cadillac considering more engines, Vsport model for Escalade

Want to roll in the latest Cadillac Escalade? You can get it with a 6.2-liter V8... or a 6.2-liter V8. Cadillac only offers the one engine option. But that may soon change.
According to the latest from Automotive News, Cadillac is contemplating a couple of new powertrain options for its blingin' big ute. The report suggests a twin-turbo V6 and a V6 turbodiesel could be offered, and that Cadillac could create a Vsport version of the Escalade like it offers on the new CTS sedan.
The more diverse engine offerings would help attract buyers from the new Lincoln Navigator, its prime competitor, which switched from a 5.4-liter V8 this year to a 3.5-liter twin-turbo V6. The turbo V6 engines (both gasoline and diesel) would also help Cadillac market the Escalade overseas - particularly in Europe, where higher fuel prices preclude the prospect of driving a big V8 SUV for many buyers. Escalade sales have dropped from 35-40k units in the mid-2000s to around 12,000 the past couple of years.

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.

GM announces $7 billion Michigan factory investment, most going to EVs

GM announced a $7 billion investment in Michigan manufacturing, much of which is earmarked for EV production. Four sites are included, but the key elements are a new battery cell plant in Lansing and the conversion of GM's existing Orion Township facility to expand production of the forthcoming Chevrolet Silverado EV and its GMC Sierra sibling.  GM says it is the largest investment announcement in company history and that it will create 4,000 new jobs. It also says 1,000 jobs will be retained. "We are building on the positive consumer response and reservations for our recent EV launches and debuts, including the GMC Hummer EV, Cadillac Lyriq, Chevrolet Equinox EV and Chevrolet Silverado EV," said GM CEO Mary Barra.  GM says the Orion expansion and new battery plant will support an increase in full-size electric truck production capacity to 600,000 units. This is in addition to the Factory ZERO facility in Detroit that will also be constructing the electric Silverado and Sierra.  The Orion Township factory current builds the Chevrolet Bolt EV and EUV, and will continue to do so during the plant's conversion. GM did not indicate what will happen with the Bolts once that conversion is complete or whether all will continue to be built at Orion. They do not use the Ultium vehicle architecture. GM will build other EV models at three other factories that are under construction or being converted. They are located in Spring Hill, Tennessee, Ingersoll, Ontario, and Ramos Arizpe, Mexico. GM says that it will have the ability to produce 1 million electric vehicles by 2025. The Ultium Cells Lansing facility is a $2.6 billion joint investment by GM and LG Energy Solution. GM says it alone will create 1,700 jobs once fully operational by late 2024. It will join two other GM Ultium Cells battery factories currently under construction in the United States, one in Ohio and the other in Tennessee.  Not all of the $7 billion investment will be for EVs. It also announced $510 million of the total will go toward upgrading the Lansing Delta Township Assembly to produce the next-generation Chevrolet Traverse and Buick Enclave. Money will also go to upgrading Lansing Grand River Assembly.