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General Motors Plans Production of Fully Autonomous Cars

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General Motors Company (GM - Free Report) has announced that it is manufacturing the first mass-production autonomous car with no steering wheel, brake pedal or accelerator pedal, per a Reuters report. The auto giant is seeking approval from the Federal government for the fully autonomous vehicle and intends to make available the cars in 2019.

Self-driving Cruise AV car, a rebranded version of General Motors’ Chevrolet Bolt EV, will be a frontrunner in autonomous vehicles in commercial passenger service. Also it will be among the first to not have manual controls for brakes, steering and throttle.

Lately, a number of leading automakers across the globe have been stepping up their activities on the autonomous vehicle front. Ford Motor Company (F - Free Report) recently announced that it will tie up with delivery service, Postmates, as it plans to begin the test in a U.S. city in order to understand how self-driving cars can help transport people, food and packages.

General Motors intends to have a better control over its self-driving fleet, as there is huge potential for earning revenues in the form of sale of various services related to consumers riding in autonomous vehicles.

The company has outperformed the industry it belongs to over the last six months. Its shares have increased 24.4% compared with the industry’s growth of 11.2 %.

Ford carries a Zacks Rank #2 (Buy), while General Motors has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

A few top-ranked automobile stocks in the same space are Allison Transmission Holdings, Inc. (ALSN - Free Report) and Lear Corporation (LEA - Free Report) , each carrying a Zacks Rank #2.  

Allison Transmission has a long-term growth rate of 10%. The company’s shares have gained 32.5% in the past 12 months.

Lear Corporation has a long-term growth rate of 7.1%. The company’s shares have gained 29.4% in the past 12 months.

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