Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Honda Motor Co., Ltd. (HMC) - free report >>
General Motors Company (GM) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Honda Motor Co., Ltd. (HMC) - free report >>
General Motors Company (GM) - free report >>
Image: Bigstock
General Motors to Cut Jobs in Ohio Plant as Car Demand Wanes
General Motors Company (GM - Free Report) announced that it is laying off around 1,500 workers at its plant in Lordstown, OH, per CNBC. The auto giant took such a decision due to the dramatically slowing demand for compact cars. Notably, the plant manufactures only the Chevy Cruze model and it employs around 3,000 workers.
In fact, the demand for sedans declined steeply in recent times. This year, car sales declined 13.2% while that of SUVs, crossovers and pickups rose 7%. For Chevy Cruze, the sales decline is steeper. Per Autodata, Chevy Cruze sales plunged 28% in 2018. In 2017, over 184,000 Cruze models were sold in the United States where sales of the same topped 273,000 vehicles in 2013.
It has been informed that the facility will be slowing the assembly lines by eliminating one of the two shifts, starting from mid-June. General Motors informed that up to 1,500 workers could be impacted by the decision.
In the past six months, General Motors has underperformed the industry it belongs to. The company’s shares have declined 15.4% compared with the industry’s fall of 11.5%.
General Motors carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Honda Motor Co., Ltd. (HMC - Free Report) and Renault SA (RNLSY - Free Report) . While Allison Transmission Holdings sports a Zacks Rank #1, Honda and Renault carry a Zacks Rank #2 (Buy).
Allison Transmission has an expected long-term growth rate of 10%. In the past year, shares of the company have returned 16.7%.
Honda has an expected long-term growth rate of 4.8%. In the past year, shares of the company have returned 22%.
Renault has expected long-term growth rate of 3.5%. The shares of the company have advanced 37.9% in the past year.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>