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GM promises to add 20 EVs and fuel-cell cars to lineup, paid for by SUVs

DETROIT — General Motors outlined plans on Monday to add 20 new battery electric and fuel-cell vehicles to its global product lineup by 2023, financed by robust profits from sales of gasoline-fueled trucks and sport utility vehicles in the United States and China. "General Motors believes in an all-electric future," GM global product development chief Mark Reuss said on Monday during a briefing at the company's suburban Detroit technical center. Future generations of GM electric vehicles "will be profitable," Reuss said, but added it was not clear when GM could make all its new vehicle offerings zero-emission electric cars. Regulators in China and some European countries have floated proposals to ban internal combustion engines by 2030 or 2040. "We will continue to make sure our internal combustion engines will get more and more efficient," Reuss said. GM shares were up more than 4 percent in midday New York trading on positive comments from Rod Lache, auto analyst at Deutsche Bank. Automakers, including electric vehicle market leader Tesla, lose money on electric cars because battery costs are still higher than comparable internal combustion engines. The company offered sneak peeks of three EV prototypes: a Buick SUV, a sporty Cadillac wagon and a futuristic pod car wearing a Bolt badge. GM funds its forays into new technology using a river of cash generated by old-technology vehicles popular with its core customer base in the United States heartland. In comparison, Tesla has burned through an estimated $10 billion in cash and has yet to show a full year profit. GM earned more than 90 percent of its $12.5 billion in pretax profits last year in North America, amid robust demand for its lineup of large sport utility vehicles and pickup trucks. The company's profitable operations in China rely on consumer demand for an expanding lineup of gasoline powered SUVs. GM has previously announced plans to make some of its future electric vehicles capable of driving themselves in robot taxi fleets. The company offered sneak peeks of three electric vehicle prototypes: a Buick brand sport utility vehicle, a sporty Cadillac wagon and a futuristic pod car wearing a Bolt badge. GM collaborated with Korean battery maker LG Chem to build the Bolt battery system. Company officials did not say what companies would supply batteries for the larger fleet of vehicles promised by 2023. Fuel-cell vehicles will also play a role in GM's future, the company said.

Junkyard Gem: 1997 Cadillac Catera

GM's Cadillac Division was having a tough time in the early 1990s, with an onslaught of Lexuses and Infinitis pouring across the Pacific to steal their younger customers while high-end German manufacturers picked off their older customers. Flying an S-Class-priced model between assembly lines in Turin and Hamtramck hadn't worked out, so why not look to the European outposts of the far-flung GM Empire for the next Cadillac? That's how the Catera was born, and I have found a rare first-year example in a North Carolina car graveyard. Across the Atlantic, GM's Opel and Vauxhall were doing good business with prosperous European car buyers by selling them the sleek rear-wheel-drive Omega B (whose platform also lived beneath the Holden VT Commodore in Australia). Here was a genuine German design that competed with success against BMW and Audi on their home turf! So, the Omega B was Americanized and renamed the Catera. Opel wasn't a completely unknown brand to Americans at the time, since its cars were sold here with their own badging through Buick dealerships from the middle 1950s through the late 1970s (for a much shorter period, American Pontiac dealers attempted to sell Vauxhalls). Even after that, plenty of Opel DNA showed up in the products of U.S.-market GM divisions. The Catera was by far the most affordable Cadillac for 1997, with an MSRP starting at $29,995 (about $59,113 in 2024 dollars). Being a genuine German car, it looked much more convincingly European than the DeVille ($36,995), Eldorado ($37,995) and Seville ($39,995). Inspired by the ducks on the Cadillac emblem (they were really supposed to be martlets, mythical birds with no feet and occasionally lacking beaks), Cadillac's marketers went after youthful car shoppers with a whimsical animated duck named Ziggy. For the 21st century, the birds were removed from the Cadillac emblem in order to attract California buyers under 45 years of age. As we all know, the Catera flopped hard in the marketplace. What sold well in Europe turned out not to translate so well in in North America, especially when bearing the badges of such a historically prestigious brand. The Catera's engine was a 54-degree 3.0-liter V6 rated at 200 horsepower and 192 pound-feet. Just as had been the case with its predecessor, the Allante, no manual transmission was available.

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.