The share price of General Motors Company (GM - Free Report) increased to $36.01 on Jan 9, two days after the automaker and its joint ventures in China reported a 7.1% year-over-year increase in sales for 2016, taking the figure to a record 3,870,587 vehicles. This ensures that sales in China contribute more than a third of the automaker’s global sales.
The company launched 13 new and refreshed vehicles in the nation over the year, with emphasis on the luxury, SUV and MPV segments. This will help General Motors to achieve the goal of launching 60 models through 2020.
Sales Performance of Brands
General Motors offers a wide range of passenger and commercial vehicles in China. The varied brands of vehicles on offer are Baojun, Buick, Cadillac, Chevrolet, Jiefang and Wuling.
The Buick brand’s sales in China rose 19% to a record 1,180,372 units in 2016. The upside was driven by strong sales of Excelle GT and Envision. Sales of the Cadillac luxury vehicle brand witnessed a 46% rise to a record 116,406 units in 2016. The brand’s annual sales in China crossed the 100,000 mark for the first time. Sales of Chevrolet amounted to 525,273 units. The brand will launch 20 new or refreshed products in China by the end of 2020. The Baojun brand’s sales increased 49% year over year to a record 688,390 units in 2016. Deliveries of the 730 MPV and 560 SUV were strong. Wuling sales amounted to 1,359,638 units in China last year.
General Motors has performed nearly in line with the Zacks categorized Auto Manufacturers-Domestic industry over the last three months. Share price of General Motors increased 12%, while the industry saw a 12.1% rise over the period. The company benefitted from good operating results in the last quarter, business initiatives like the expansion of Maven and investment in facilities.
Zacks Rank & Other Key Picks
General Motors currently carries a Zacks Rank #4 (Sell).
Some better-ranked companies in the auto space include Penske Automotive Group, Inc. (PAG - Free Report) , Fox Factory Holding Corp (FOXF - Free Report) and GKN plc .
Penske Automotive sports a Zacks Rank #1 (Strong Buy). It has an expected long term EPS growth rate of 8.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory carries a Zacks Rank #2 (Buy). The company has an expected earnings growth rate of around 16.6% for the long term.
Meanwhile, GKN has a Zacks Rank #2. It has a long-term growth rate of 6.3%.
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