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General Motors Offers Job Transfers for 2,700 U.S. Workers

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General Motors Company (GM - Free Report) announced that around 2,700 workers of the U.S. hubs, which are closing, will be offered jobs at other factories of the company, per AP. The four plants scheduled to close in 2019 will lay off 3,300 blue-collared workers in the United States. Further, shutting down of one manufacturing site will lay off 8,000 white-collared workers and 2,600 factory workers in Canada.

Out of the 3,300 workers in the United States, 2,700 will be offered jobs at other plants of the company while a few will retire. New job allocation will also consist of relocation for a few of the workers. The blue-collared workers will be hired in factories, which will raise their vehicle productions targets.

New job opportunities at existing plants offer good prospects for the blue-collared workers, who are likely to lose their jobs at factories that are slated to close next year. However, the closures will still hit the white-collared workers, who are currently working at the four U.S. hubs. The company will offer similar openings to a few of these workers while others will get assistance to find new jobs.

General Motors Company Price and Consensus

 

In the last month, General Motors announced that it will close production at four plants in the United States and one in Canada, owing to change in consumer preferences. Plummeting demand for passenger cars, and increased demand for SUVs and trucks impelled General Motors to trim productions and slash manufacturing of six car models.

The decision has been taken to raise the long-term profitability of the company beside improving the potential of cash generation. General Motors anticipates that the closing of factories and cutting of car models will elevate annual adjusted automotive free cash flow by $6 billion by the end of 2020 and lower capital expenditure by roughly $1.5 billion.

Price Performance

Over the past month, General Motors’ stock has lost 1.6%, outperforming 2.4% decrease recorded by the industry it belongs to.

 



Zacks Rank & Other Key Picks

General Motors currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the auto space are Fox Factory Holding Corporation (FOXF - Free Report) , Cooper Tire & Rubber Company , and AutoZone, Inc. (AZO - Free Report) . Fox Factory currently sports a Zacks Rank #1 (Strong Buy) while Cooper Tire and AutoZone carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fox Factory has an expected long-term growth rate of 5%. Shares of the company have increased 40.1% over the past six months.

Cooper Tire has an expected long-term growth rate of 4%. Shares of the company have rallied 13.9% over the past six months.

AutoZone has an expected long-term growth rate of 12%. Over the past six months, shares of the company have gained 26.8%.

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