General Motors Company (GM - Free Report) announced that it will invest around $18.5 million for a new technology center in the Roswell building, located in Fulton County, GA, U.S. The technology center is expected to create employment opportunity for 1,000 workers in the region.
The building was formerly used by United Parcel Service Inc. (UPS - Free Report) as an information technology, marketing and communications center. The 230,000-square feet building will now be converted into a software development center.
The Roswell building is favorably located in a region, where the local government has provided incentives for economic redevelopment since it has a poverty rate of more than or equal to 15%. Consequently, the company will enjoy $3,500 annual income tax credit for every employment opportunity it creates.
General Motors focuses on establishing technology centers in Fulton County. Other than the Roswell building, it also uses the Cobalt Center in Alpharetta in the same County for this purpose. Previously, Cobalt Center was used by AT&T Inc. (T - Free Report) .
Sources revealed that General Motors used to outsource most of its IT work. The company now plans to reverse the situation and bring innovation and development in its IT segment. As part of this effort, last year, the company announced plans to hire 10,000 workers at four new technology centers over the next three to five years to enhance productivity and efficiency. The company has already opened one of the centers in Austin, Texas.
General Motors posted a 9.7% decline in 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, earnings outpaced the Zacks Consensus Estimate of 61 cents.
Profits ebbed 5.9% to $1.6 billion from $1.7 billion a year ago due to lower profits from North America and higher losses 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.
The automaker, which competes with Ford Motor Co. (F - Free Report) , currently retains a Zacks Rank #2 (Buy).