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General Motors Company ( GM - Analyst Report ) plans to manufacture a luxury electric car dubbed ELR based on the technology used in its Volt plug-in hybrid for its Cadillac brand as part of its long-term goal to become a leader in the fuel-efficient vehicles market.
The Volt, which went on sale in mid-December last year, is the most fuel-efficient compact car sold in the U.S. as rated by the U.S. Environmental Protection Agency (EPA).
The vehicle operates as a pure battery electric vehicle until its plug-in battery capacity is depleted, at which point its gasoline engine powers an electric generator to extend the vehicle’s range. It can travel 25 to 50 miles (40 to 80 km) on lithium-ion battery alone. The Volt’s regenerative braking also contributes to the generation of on-board electricity.
GM did not disclose the timing for production of the ELR coupe. However, it is rumored that the vehicle will go into production in 2013 as a 2014 model.
This apart, GM also plans to build an all-electric subcompact car for the Chevrolet brand. The automaker has already chosen A123 Systems Inc. ( ) as the battery supplier for the vehicle by awarding a contract to the Watertown, Massachusetts-based battery maker. The pure electric Chevy subcompact would compete with Nissan Motor Co.’s ( NSANY ) Leaf, which was introduced in late-2010.
GM, a Zacks #3 Rank (Hold) stock posted a profit of $2.54 billion or $1.54 per share in the second quarter of the year, which almost doubled from $1.33 billion or 85 cents per share in the same quarter of 2010. With this, the automaker has beaten the Zacks Consensus Estimate by 33 cents per share.
Revenue in the quarter appreciated 19% to $39.37 billion (including $330 million from GM Financial) on worldwide sales of 2.32 million units versus 2.16 million a year ago, thereby capturing a market share of 12.2%. It also exceeded the Zacks Consensus Estimate of $36.61 billion.
The company fared well compared with its hometown rival, Ford Motor Co. ( F - Analyst Report ) during the quarter under study. Ford posted a profit of $2.64 billion or 65 cents per share in the second quarter, a $67 million or 2.5% decline from $2.70 billion or 68 cents per share in the corresponding quarter of 2010. However, the company’s profits were higher than the Zacks Consensus Estimate of 60 cents per share.
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