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General Motors (GM) Plans to Invest $300M in Orion Plant

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General Motors Company (GM - Free Report) plans to invest $300 million in a suburban Orion plant, per Reuters. The Orion plant builds electric and autonomous vehicles for Chevrolet and self-driving Cruise unit of General Motors. This investment is aimed at developing future technologies and is likely to create several jobs.

Notably, General Motors has been criticized severely from the U.S. authorities for the decision of stopping production at the assembly plant based in Lordstown, OH. Given this bashing by the government, this latest investment plan is very significant.

The company is set to build an electric compact vehicle for Chevy. The new Chevy vehicle will be manufactured on the same compact architecture as Chevrolet Bolt EV and Cruise AV that are assembled in Orion. The Orion Township plant is scheduled to build new generation of electric and self-driving vehicles, utilizing the BEV3 architecture. But this will not take place before 2023.

General Motors strives to excel in building products and technology, and expanding Chevrolet and Cadillac brands globally. In fourth-quarter 2018, the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

General Motors has an expected long-term growth rate of 8.9%. Over the past three months, its shares have outperformed the industry it belongs to. Over this period, shares of the company have risen 15.4% while the industry grew 8%.

General Motors currently carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , Oshkosh Corp. (OSK - Free Report) and Dana Incorporated (DAN - Free Report) . While Ferrari currently sports a Zacks Rank #1 (Strong Buy), Oshkosh and Dana carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ferrari has an expected long-term growth rate of 18.5%. Over the past year, shares of the company have risen 11.8%.

Oshkosh has an expected long-term growth rate of 11.3%. Over the past three months, shares of the company have gained 32.3%.

Dana has an expected long-term growth rate of 4.4%. Over the past three months, shares of the company have risen 39.2%.

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