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General Motors (GM) to Invest $81M in Premium Cadillac Celestiq
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General Motors (GM - Free Report) has announced that it will invest $81 million at its global design and technology campus in suburban Detroit to hand-build its Cadillac sedan, Celestiq, a new electric flagship car that will be produced in limited quantities. The car is slated to be unveiled next month and only a hundred vehicles are expected to be produced each year, with the cost per car going up to $200,000 or more.
The investment will be used to purchase and install the required equipment to hand-build the model and for the ongoing campus renovation work. The Celestiq roof is supposed to be one of the first to feature a four-quadrant, suspended-particle-device smart glass that lets each car occupant set their own level of roof transparency. The driver and front-seat passenger will enjoy a pillar-to-pillar freeform display with active privacy to help mitigate driver distraction.
The vehicle will be based on GM’s new Ultium electric vehicle platform, which was first used in the production of the GMC Hummer EV. The Ultium Platform encompasses a common electric vehicle architecture and will support GM’s newest EVs, including 30 new models by 2025.
The platform will also allow the firm to streamline machinery, tooling and assembly processes which will realize a strategic value chain shift across its network of vehicle assembly plants. This flexibility enables lower capital investments and greater efficiencies as additional assembly plant transformations occur.
This is GM’s first time building a vehicle for commercial sales at its massive tech campus in Warren, MI. It also marks an important milestone for Cadillac to offer a hand-built car, which is generally earmarked for high-end sports cars and luxury vehicles by premium brands.
Celestiq will bring a wave of innovation across the company’s supplier community and enhance Cadillac’s brand value besides delivering exceptional quality vehicles to its customers. The company is confident that the new car will spur its growth and reputation in the near future.
Shares of GM have lost 43.1% over the past year compared with its industry’s 20.4% decline.
Wabash National has an expected earnings growth rate of 239.3% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Wabash National’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. WNC pulled off a trailing four-quarter earnings surprise of 51.26%, on average. The stock has declined 2.3% over the past year.
Fox Factory has an expected earnings growth rate of 14.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1% upward in the past 30 days.
Fox Factory’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. FOXF pulled off a trailing four-quarter earnings surprise of 10.18%, on average. The stock has declined 45% over the past year.
Standard Motor has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 3.1% upward in the past 30 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has declined 9.3% over the past year.
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General Motors (GM) to Invest $81M in Premium Cadillac Celestiq
General Motors (GM - Free Report) has announced that it will invest $81 million at its global design and technology campus in suburban Detroit to hand-build its Cadillac sedan, Celestiq, a new electric flagship car that will be produced in limited quantities. The car is slated to be unveiled next month and only a hundred vehicles are expected to be produced each year, with the cost per car going up to $200,000 or more.
The investment will be used to purchase and install the required equipment to hand-build the model and for the ongoing campus renovation work. The Celestiq roof is supposed to be one of the first to feature a four-quadrant, suspended-particle-device smart glass that lets each car occupant set their own level of roof transparency. The driver and front-seat passenger will enjoy a pillar-to-pillar freeform display with active privacy to help mitigate driver distraction.
The vehicle will be based on GM’s new Ultium electric vehicle platform, which was first used in the production of the GMC Hummer EV. The Ultium Platform encompasses a common electric vehicle architecture and will support GM’s newest EVs, including 30 new models by 2025.
The platform will also allow the firm to streamline machinery, tooling and assembly processes which will realize a strategic value chain shift across its network of vehicle assembly plants. This flexibility enables lower capital investments and greater efficiencies as additional assembly plant transformations occur.
This is GM’s first time building a vehicle for commercial sales at its massive tech campus in Warren, MI. It also marks an important milestone for Cadillac to offer a hand-built car, which is generally earmarked for high-end sports cars and luxury vehicles by premium brands.
Celestiq will bring a wave of innovation across the company’s supplier community and enhance Cadillac’s brand value besides delivering exceptional quality vehicles to its customers. The company is confident that the new car will spur its growth and reputation in the near future.
Shares of GM have lost 43.1% over the past year compared with its industry’s 20.4% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
GM carries a Zacks Rank #3 (Hold), currently.
Better-ranked players in the auto space include Wabash National Corporation (WNC - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Fox Factory Holdings (FOXF - Free Report) and Standard Motor Products (SMP - Free Report) , each carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Wabash National has an expected earnings growth rate of 239.3% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Wabash National’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. WNC pulled off a trailing four-quarter earnings surprise of 51.26%, on average. The stock has declined 2.3% over the past year.
Fox Factory has an expected earnings growth rate of 14.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1% upward in the past 30 days.
Fox Factory’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. FOXF pulled off a trailing four-quarter earnings surprise of 10.18%, on average. The stock has declined 45% over the past year.
Standard Motor has an expected earnings growth rate of 5.2% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 3.1% upward in the past 30 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 40.34%, on average. The stock has declined 9.3% over the past year.