We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Motors (GM) to Invest $552 Million in U.S. Plants
Read MoreHide Full Article
General Motors Company (GM - Free Report) has announced plans to invest around $552 million in the U.S. mainly for upgrading manufacturing facilities in Tonawanda, Lockport and Rochester located in New York and Parma Metal center in OH.
General Motors is focused on investing in innovative technologies and vehicles which should provide sustained growth while maximizing shareholder value. The automaker plans to spend around $2.2 billion in 2016 in the U.S operations in order to support the production of upgraded engines and vehicles. This $552 million investment is part of this $2.2 billion investment.
Of the total $552 million investment, $334 million will be used to upgrade plants in New York. Of this $334 million, $296 million will be allocated to the Tonawanda engine facility for supporting engine production in the future. The investment will be utilized for purchasing new equipment and machinery which will be required for manufacturing next-generation engines and other automotive components. General Motors further confirmed that the investment will create new job opportunity for around 67 workers along with retaining 857 jobs.
Around $32 million will be invested in the Lockport plant. The plant mainly produces cooling, heating, air conditioning and ventilation components. The investment will help in retaining 320 jobs including 13 salaried jobs.
General Motors will put in $5.9 million in the Rochester plant which mainly produces engine management systems. The investment will help retain 20 jobs at the plant.
General Motors will also invest $218 million in Parma Metal Center located in Ohio. The investment will be utilized for new presses, dies and sub-assemblies. The investment will help in keep 140 jobs.
General Motors has outperformed the Zacks categorized Auto Manufacturers-Domestic industry so far this year. Share price of the stock increased 5.7% year-to-date, while the industry saw a 4.4% increase. The company benefitted from the strong results in the last quarter and business initiatives including the expansion of Maven and investment in facilities. Expectations of higher earnings for 2016 also raise optimism.
Zacks Rank & Other Key Picks
General Motors currently carries a Zacks Rank #2 (Buy).
Other favorably ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , America's Car-Mart Inc. (CRMT - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .
Allison Transmission has a long-term growth rate of 11%.
America's Car-Mart has a long-term growth rate of 45.5%.
Rush Enterprises has a long-term expected growth rate of 15%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
General Motors (GM) to Invest $552 Million in U.S. Plants
General Motors Company (GM - Free Report) has announced plans to invest around $552 million in the U.S. mainly for upgrading manufacturing facilities in Tonawanda, Lockport and Rochester located in New York and Parma Metal center in OH.
General Motors is focused on investing in innovative technologies and vehicles which should provide sustained growth while maximizing shareholder value. The automaker plans to spend around $2.2 billion in 2016 in the U.S operations in order to support the production of upgraded engines and vehicles. This $552 million investment is part of this $2.2 billion investment.
Of the total $552 million investment, $334 million will be used to upgrade plants in New York. Of this $334 million, $296 million will be allocated to the Tonawanda engine facility for supporting engine production in the future. The investment will be utilized for purchasing new equipment and machinery which will be required for manufacturing next-generation engines and other automotive components. General Motors further confirmed that the investment will create new job opportunity for around 67 workers along with retaining 857 jobs.
Around $32 million will be invested in the Lockport plant. The plant mainly produces cooling, heating, air conditioning and ventilation components. The investment will help in retaining 320 jobs including 13 salaried jobs.
General Motors will put in $5.9 million in the Rochester plant which mainly produces engine management systems. The investment will help retain 20 jobs at the plant.
General Motors will also invest $218 million in Parma Metal Center located in Ohio. The investment will be utilized for new presses, dies and sub-assemblies. The investment will help in keep 140 jobs.
GENERAL MOTORS Price
GENERAL MOTORS Price | GENERAL MOTORS Quote
Price Performance
General Motors has outperformed the Zacks categorized Auto Manufacturers-Domestic industry so far this year. Share price of the stock increased 5.7% year-to-date, while the industry saw a 4.4% increase. The company benefitted from the strong results in the last quarter and business initiatives including the expansion of Maven and investment in facilities. Expectations of higher earnings for 2016 also raise optimism.
Zacks Rank & Other Key Picks
General Motors currently carries a Zacks Rank #2 (Buy).
Other favorably ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , America's Car-Mart Inc. (CRMT - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .
All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has a long-term growth rate of 11%.
America's Car-Mart has a long-term growth rate of 45.5%.
Rush Enterprises has a long-term expected growth rate of 15%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>