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General Motors to Boost Workforce

GM F

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General Motors Company (GM - Analyst Report) is opening the second of its four planned Information Technology Innovation Center in Warren, Michigan. The company pans to hire up to 1,500 high-tech employees over the next few years to support its IT services.

General Motors will hire software developers, database experts, business analysts and other IT personals for the Michigan plant. Recent college graduates as well as experienced professionals are eligible for the positions. In addition, the company is conducting campus recruitment and participating in local job fairs.

Last month, the company opened the first information technology center in Austin, Texas. This facility provided job opportunity to 500 workers, who were engaged for improving the company’s internal information technology capabilities.

Sources reveal that General Motors outsources about 90% of its IT work and the remaining 10% is done internally. The company now plans to reverse the situation and bring innovation and development in its IT segment. Thus, the company plans to hire 10,000 workers at four new technology centers over the next three to five years. This strategy is expected to make it more productive and efficient.

General Motors, in the second quarter of 2012, registered a 41% decline in its profit to $1.49 billion or 90 cents per share from $2.52 billion or $1.54 in the corresponding quarter of 2011. Nevertheless, the earnings per share exceeded the Zacks Consensus Estimate by 15 cents.

Total revenues fell 4.5% year over year to $37.60 billion in the quarter, missing the Zacks Consensus Estimate of $37.98 billion. The declines in the profit and revenues were attributable to strengthening of U.S. dollar against most of the major currencies as well as weak macroeconomic conditions globally, especially in Europe and South America.

Detroit, Michigan-based General Motors is the largest automobile manufacturer in the world and one of the ‘Big Three’ U.S. automakers. However, like its competitor Ford Motor Co. (F - Analyst Report), the company's significant exposure to troubled Europe has adversely affected its operations in the continent.

Currently, General Motors retains a Zacks #3 Rank, which translates into a short-term Hold rating. We have a long-term Neutral recommendation on the stock.

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