General Motors Company (GM - Free Report) has recently introduced the upgraded version of Chevrolet Silverado and GMC Sierra at Pontiac. The new vehicle is expected to hit the market in the second quarter of 2013.
The truck market is witnessing growth after five years of stagnation. The company expects the new 2014 trucks, which were last revamped in 2007, to boost its results. In addition, recovery of the housing industry and rising demand for replacement of the aging vehicles will have favorable impacts on the company’s performance.
These new trucks will also help General Motors to withstand stiff competition from trucks manufactured by Ford Motor Co. (F - Free Report) and Chrysler. Given its light weight, which is around 200 pounds lighter than trucks of the competitors, the vehicle will provide better gas mileage.
The new trucks from General Motors features updated steering, suspension and brakes together with an aggressive look. It comes with three different engines including a 262-horsepower, 4.3-liter V6 engine, a 325-horsepower, 5.3-liter V8 engine and a 376-horsepower, 6.2-liter V8 engine.
General Motors posted a 9.7% decline in its earnings (excluding special items) to 93 cents per share in the third quarter of 2012 from $1.03 in the corresponding quarter a year ago. However, the results outpaced the Zacks Consensus Estimate of 61 cents.
Profit ebbed 5.9% to $1.6 billion from $1.7 billion a year ago due to lower profits from North America and higher loss in Europe. Revenues grew 2.5% year over year to $37.6 billion, surpassing the Zacks Consensus Estimate of $36.3 billion. The improvement was driven by an increase in worldwide sales volume to 2.3 million units.
Detroit, Michigan-based General Motors is the largest automobile manufacturer in the world and one of the ‘Big Three’ U.S. automakers. The company's significant exposure to troubled Europe has adversely affected its operations in the continent.
Currently, General Motors retains a Zacks #3 Rank, which translates into a short-term Hold rating. We have a long-term Neutral recommendation on the stock.