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General Motors (GM) to Cancel Shift, Lay Off 1,000 Workers
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General Motors Company (GM - Free Report) is scheduled to cancel a shift in its sedan plant at Kansas City, MI. This news was published in The Wall Street Journal. Following this move, about 1,000 employees will be retrenched amid a declining demand for passenger cars.
General Motors notified its workers that the third shift will be eliminated from late September.
Over the last seven months, the company has announced its plan to lay off more than 5,000 employees, across half a dozen U.S. factories, primarily due to slump in passenger car sales.
This sharp downturn in passenger car transaction is because of the rising gas prices and new launches from automakers. Per Autodata Corp., Malibu sales fell 30% till this May, while midsize cars were down 14%.
Per General Motor’s executives, they are adjusting their production schedules to avoid vehicle overproduction.
The company’s Kansas city factory manufactures a single passenger car model, i.e. the Chevrolet Malibu midsize sedan.
Incidentally, General Motors aims to increase its factory capacities for pickup trucks and SUVs. Recently, the company has announced to build a new shift facility at its Arlington plant, TX, which would support future vehicle production and enroll around 1,250 employees.
In recent years, it has also negotiated a few flexible terms with the United Auto Workers that makes it less expensive to dismiss workers than in the past market recessions.
General Motors has been forced to scale down or shut its manufacturing operations in some regions due to production constraints such as high costs and unfavorable currency translation effects.
The company has also decided to stop vehicle and engine production, and cut down on engineering operations in Australia by 2017-end due to the strength of the Australian dollar against the American dollar, high production costs, limited domestic market and a stiff competition.
Price Performance
General Motors shares have underperformed the Zacks categorized Automotive-Domestic industry in the last three months. The company’s shares have declined 0.6%, while the industry has advanced 9.2%.
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 15.6%.
The expected long-term growth rate for Dana is pegged at 3%.
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General Motors (GM) to Cancel Shift, Lay Off 1,000 Workers
General Motors Company (GM - Free Report) is scheduled to cancel a shift in its sedan plant at Kansas City, MI. This news was published in The Wall Street Journal. Following this move, about 1,000 employees will be retrenched amid a declining demand for passenger cars.
General Motors notified its workers that the third shift will be eliminated from late September.
Over the last seven months, the company has announced its plan to lay off more than 5,000 employees, across half a dozen U.S. factories, primarily due to slump in passenger car sales.
This sharp downturn in passenger car transaction is because of the rising gas prices and new launches from automakers. Per Autodata Corp., Malibu sales fell 30% till this May, while midsize cars were down 14%.
Per General Motor’s executives, they are adjusting their production schedules to avoid vehicle overproduction.
The company’s Kansas city factory manufactures a single passenger car model, i.e. the Chevrolet Malibu midsize sedan.
Incidentally, General Motors aims to increase its factory capacities for pickup trucks and SUVs. Recently, the company has announced to build a new shift facility at its Arlington plant, TX, which would support future vehicle production and enroll around 1,250 employees.
In recent years, it has also negotiated a few flexible terms with the United Auto Workers that makes it less expensive to dismiss workers than in the past market recessions.
General Motors has been forced to scale down or shut its manufacturing operations in some regions due to production constraints such as high costs and unfavorable currency translation effects.
The company has also decided to stop vehicle and engine production, and cut down on engineering operations in Australia by 2017-end due to the strength of the Australian dollar against the American dollar, high production costs, limited domestic market and a stiff competition.
Price Performance
General Motors shares have underperformed the Zacks categorized Automotive-Domestic industry in the last three months. The company’s shares have declined 0.6%, while the industry has advanced 9.2%.
Zacks Rank & Key Picks
General Motors currently carries a Zacks Rank #3 (Hold).
General Motors Company Price and Consensus
General Motors Company Price and Consensus | General Motors Company Quote
Better-ranked companies in the auto space are Fiat Chrysler Automobiles N.V. , Fox Factory Holding Corp (FOXF - Free Report) and Dana Incorporated (DAN - Free Report) , each carrying 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 15.6%.
The expected long-term growth rate for Dana is pegged at 3%.
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>>