1992 Chevy Cheyenne Gas Engine on 2040-cars

Auto blog

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.

Sunday Drive: Performance comes in many shapes and sizes

The Chevrolet Corvette has always stood out as a bastion of reasonably priced performance, and the latest 'Vette has that in spades. And while its expected starting price of around $120,000 certainly isn't cheap, it's an undeniable deal in the supercar world – remember, this thing'll do 210 miles per hour thanks to its 755-horsepower supercharged V8 engine. And did you get a load of that massive rear wing? Team Corvette's longtime foe, the Porsche 911, is similarly hellbent on ultimate performance. And as a reminder of how long the Corvette/911 rivalry has been melting tires we present the 1990 Porsche 911 as reimagined by Singer you see below. It's beautiful, it's green, and it's packing 500 air-cooled horsepower. You don't have to burn gasoline to go fast, as proven by the second-generation Tesla Roadster, which was revealed as a surprise late last week. Elon Musk says it'll be the quickest car in the world with a 0-60 time of just 1.9 seconds. And while you may not think of a semi truck when you think speed, the Tesla Semi can do 0-60 in 5 seconds flat unloaded, or in 20 seconds with a load of 80,000 pounds. Compared to today's crop of diesel semis, that's amazing. Continuing the truck theme, we present an artists rendering of what the next-generation Ram 1500 pickup may look like. Spoiler alert: Ram's mini-semi look is giving way to something much more modern. There may even be a first-of-its-kind split tailgate at the rear. And if you don't think the Ram 1500 has anything to do with performance, we should remind you that it's one of the cheapest ways to get a tire-shredding Hemi V8 engine in America. 2019 Chevy Corvette ZR1: All hail the 755-horsepower C7 king This is the first Porsche 911 to get Singer and Williams' 500-horsepower engine Tesla Roadster surprise reveal | 'Quickest car in the world' Tesla Semi Truck revealed: Here are the key details This could be the next-generation 2019 Ram 1500 2019 Ram 1500 spotted with split tailgate

GM sees 'strong year' in 2018, then gold in Chevy Silverado for 2019

DETROIT — General Motors said on Tuesday it expects earnings in 2018 to be largely flat compared with 2017, but that profits should pick up pace in 2019 as its revamped line of high-margin pickup trucks hits the U.S. market. The 2018 earnings outlook was above market expectations, sending GM shares up more than 3 percent in premarket trading. "GM had a very good 2017 as we continued to transform our company to be more focused, resilient and profitable," GM Chief Executive Mary Barra said in a statement. "We are positioned for another strong year in 2018 and an even better one in 2019." GM and its Detroit rivals, Ford and Fiat Chrysler Automobiles, are bringing on new trucks at a time when overall U.S. new vehicle sales have been falling, but truck sales continue to grow as consumers abandon passenger cars in favor of pickups, SUVs and crossovers. GM on Saturday fired a new round in the battle for profits from one of the U.S. auto industry's most lucrative segments when it showed a new generation of its Chevrolet Silverado pickup truck at the Detroit auto show. The new Silverado, a highlight of the event, is the successor to GM's best-selling vehicle in North America. Sales of the current Silverado rose nearly 2 percent to 585,000 vehicles in 2017. In the coming months, the company will also reveal a revamped GMC Sierra pickup truck. U.S. new vehicle sales fell 2 percent in 2017 after hitting a record high in 2016, and are expected to drop further in 2018 as interest rates rise and more late-model used cars return to dealer lots to compete with new ones. GM said on Tuesday that while it retools a factory in Ft. Wayne, Indiana, to make the new pickup trucks, it will shift some production to an Oshawa, Ontario, plant in order to avoid missing sales in a hot market for the vehicles. The No. 1 U.S. automaker said it will record a $7 billion non-cash charge for its fourth-quarter 2017 earnings related to deferred tax assets. GM said it expects capital expenditure in 2018 of around $8.5 billion, about $1 billion of which will go toward funding self-driving car technology. Last week, the company said it is seeking U.S. government approval for a fully autonomous car — one without a steering wheel, brake pedal or accelerator pedal — to enter the automaker's first commercial ride-sharing fleet in 2019. GM said it expects 2017 earnings per share at the high end of its previously forecast range of $6 to $6.50.