Per Associated Press, General Motors Company (GM - Free Report) is dumping three Cadillac sedans and replacing them with two new ones over the next three and a half years. This auto giant has announced that it is going to invest $175 million to update a plant in Lansing, MI, to manufacture replacement models for ATS compact, CTS midsize and XTS full-size cars.
Sedan models have struggled in the United States market as consumers are increasingly abandoning them in favor of larger, spacious SUVs and pickup trucks. In 2012, shares of traditional passenger cars were more than 50% of new-vehicle sales in the United States but, it dropped to less than 37% in 2017. In 2017, ATS sales declined 39% while CTS and XTS sales dropped 35% and 27%, respectively.
The new cars will enter the market by the end of 2021 and further details would be released later. However, there will be no change in the workforce of the Lansing Grand River factory.
In the past three months, shares of General Motors have outperformed the industry it belongs to. During the period, its stock has witnessed rise of 19.1% in comparison with the industry’s increase of 11.7%.
General Motors currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Ferrari N.V. (RACE - Free Report) , each sporting a Zacks Rank # 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oshkosh has an expected long-term growth rate of 18.3%. Shares of the company have risen 4.2% over the past year.
Allison Transmission Holdings has an expected long-term growth rate of 10%. Over the past year, shares of the company have gained 11%.
Ferrari has an expected long-term growth rate of 17.3%. Over the past year, shares of the company have gained 66.6%.
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