Stock To Watch In Coming Days General Motors Company (NYSE:GM)
When trading began on October 16, General Motors Company (NYSE:GM) stock closed up by 1.24%. Even news of strong revival of sales volumes in its second largest market of Europe did not help General Motors Company (NYSE:GM) shares recoup some of the lost market valuation. Reports have indicated that new-car sales in Europe recorded fastest growth rates in September by scripting a 5.5% increase over last year’s numbers. General Motors Company was one the bigger beneficiaries with a sales jump of 5.4% in Europe in September.
In spite of the uncertainly, General Motors Company announced that its latest body parts manufacturing facility at Arlington has commenced operations from yesterday. Analysts have concluded that the car maker has spent close to $200 million in commissioning this plant. A total of 180 GM employees will be working this stamping plant. The car maker believes that on the plant achieving full capacity, cost saving of close to $40 million would be accrued by eliminating logistic costs. The car maker hopes to funnel part of the savings into designing new products and technologies which will help the company add value to its customers.
On the sidelines of inaugurations, General Motors Company stake holders were fretting about the likely damage that could occur to the automobile industry as a whole if the federal shutdown is not lifted in short order. Else ware in U.S, Hyundai’s CEO has been quoted as saying that “U.S. auto sales could drop by as much as 10%” due to the disruption in business due to the government shut down. Long time automobile industry watchers have gone on record to predict that the auto makers will suffer significant sales drop if the budget deadlock spills over into the week of October 21.