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General Motors (GM) to Lay Off 600 Workers in South Africa
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General Motors Company (GM - Free Report) has confirmed plans to lay off 600 workers in South Africa per a statement issued by The National Union of Metalworkers of South Africa (NUMSA). The job cuts are expected to be completed by July. The move is part of the company's plan to shut its operations in the region. Roughly 1,500 individuals are currently employed by General Motors in South Africa.
The company will be ceasing production of Chevrolet cars in the area. It has already shut down the plant, per the NUMSA statement. Meanwhile, General Motors’ firms operations in Port Elizabeth will be taken over by Isuzu, which will also be taking over the parts center for producing trucks and commercial vehicles. This is the second time that General Motors is pulling out of South Africa.
Recently, the company also announced its decision to pull out of India. While the company intends to continue production, it will no longer be selling cars in the region. These initiatives are aimed to help generate cash and focus on more profitable markets.
Earlier this year, General Motors announced the sale of its European businesses. It agreed to sell the Opel/Vauxhall subsidiary and GM Financial’s European operations to French automaker, PSA Group. The business has remained unprofitable over the last few years. With the sale of its European businesses, the company intends to focus on its core automotive business and development of new technologies, thereby working toward its transformation. In 2015, the company sold its Russian operations.
General Motors has been undertaking several initiatives to increase cash generation and improve profitability across its business. The company is undertaking cost-cutting measures as well as making structural changes. Moreover, it is concentrating on investing in emerging markets that are expected to grow at a fast pace. According to IHS forecasts, sales in India, Brazil and Russia will rise 40% to over 12 million vehicles by 2020. The company will now focus on China and Brazil in the emerging markets.
Price Performance
General Motors underperformed the Zacks categorized Automotive-Domestic industry in the last three months. Shares of the company lost 10.8% over the period while the industry saw a 2.3% decline.
Zacks Rank & Key Picks
General Motors currently carries a Zacks Rank #3 (Hold).
Fiat has an expected long-term growth rate of 22.4%.
Fox Factory has an expected long-term growth rate of around 16.5%.
The expected long-term growth rate for Lear is pegged at 7.1%.
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General Motors (GM) to Lay Off 600 Workers in South Africa
General Motors Company (GM - Free Report) has confirmed plans to lay off 600 workers in South Africa per a statement issued by The National Union of Metalworkers of South Africa (NUMSA). The job cuts are expected to be completed by July. The move is part of the company's plan to shut its operations in the region. Roughly 1,500 individuals are currently employed by General Motors in South Africa.
The company will be ceasing production of Chevrolet cars in the area. It has already shut down the plant, per the NUMSA statement. Meanwhile, General Motors’ firms operations in Port Elizabeth will be taken over by Isuzu, which will also be taking over the parts center for producing trucks and commercial vehicles. This is the second time that General Motors is pulling out of South Africa.
Recently, the company also announced its decision to pull out of India. While the company intends to continue production, it will no longer be selling cars in the region. These initiatives are aimed to help generate cash and focus on more profitable markets.
Earlier this year, General Motors announced the sale of its European businesses. It agreed to sell the Opel/Vauxhall subsidiary and GM Financial’s European operations to French automaker, PSA Group. The business has remained unprofitable over the last few years. With the sale of its European businesses, the company intends to focus on its core automotive business and development of new technologies, thereby working toward its transformation. In 2015, the company sold its Russian operations.
General Motors has been undertaking several initiatives to increase cash generation and improve profitability across its business. The company is undertaking cost-cutting measures as well as making structural changes. Moreover, it is concentrating on investing in emerging markets that are expected to grow at a fast pace. According to IHS forecasts, sales in India, Brazil and Russia will rise 40% to over 12 million vehicles by 2020. The company will now focus on China and Brazil in the emerging markets.
Price Performance
General Motors underperformed the Zacks categorized Automotive-Domestic industry in the last three months. Shares of the company lost 10.8% over the period while the industry saw a 2.3% decline.
Zacks Rank & Key Picks
General Motors currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the auto space include Fiat Chrysler Automobiles N.V. , Fox Factory Holding Corp (FOXF - Free Report) and Lear Corporation (LEA - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fiat has an expected long-term growth rate of 22.4%.
Fox Factory has an expected long-term growth rate of around 16.5%.
The expected long-term growth rate for Lear is pegged at 7.1%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>