General Motors Company ( GM ) announced that its
newly launched Chevy Silverado pickup truck is more fuel efficient
compared to other pickup trucks. The new Chevy Silverado is set to
deliver 23 miles per gallon (mpg) on the highway and is equipped
with a 355-horsepower 5.3-liter V8 engine.FORD MOTOR CO (F): Free Stock Analysis ReportGENERAL MOTORS (GM): Free Stock Analysis ReportTOYOTA MOTOR CP (TM): Free Stock Analysis
ReportTo read this article on Zacks.com click here.Zacks Investment
The consumer's preference for power, payload and towing capacity
has shifted to fuel efficiency. The new Silverado with greater
mileage will significantly lower fuel cost. In addition, the truck
is equipped with new safety features including lane departure
warning, forward collision alert and other features. With updated
steering, suspensions and brakes; the new pickups are more
aerodynamic and aggressive in look.
The automaker offers the 2014 Silverado at the same price as the
outgoing model, while the 2014 Sierra will cost $500 more than the
last version. 2014 Silverado with regular cab body style is priced
at $24,585, the double cab will be available for $28,610 and the
higher-end crew cab style will cost $32,710. 2014 Sierra will be
priced $25,085, $29,110 and $33,210 for the regular, double and
higher-end crew cab style, respectively.
General Motors expects that as the economic recovery continues,
demand for trucks will improve rapidly due to higher replacement
need of older trucks. The automaker also anticipates that sell of
high-end versions of the new pickup trucks will be better due to
American preference for advanced safety features, which is not
there in the outgoing models.
These new pickups from General Motors will create challenges for
the other automakers including Ford Motor Co. ( F ), Toyota Motor
Corp. ( TM )
and Chrysler . The 2013 F-150 of Ford features
3.5-liter, six-cylinder, turbocharged engine and two-wheel drive
provides 18 mpg. Ford also plans to improve the fuel efficiency of
the F-150 by using lighter materials. The Chrysler Ram with
3.6-liter V-6 engine delivers about 25 mpg on the highway.
General Motors posted an increase in profits to $0.8 billion or 48
cents per share in the fourth quarter of 2012 compared with $0.7
billion or 39 cents in the same quarter of 2011. The earnings per
share missed the Zacks Consensus Estimate by a penny.
Revenues moved up 3.4% to $39.3 billion in the quarter, higher
than the Zacks Consensus Estimate of $38.6 billion. Unit sales
escalated 4.2% to 2.3 million vehicles. The improvement was driven
by an increase in worldwide sales volume to 2.3 million
General Motors expects to boost its top-line in 2013 with the help
of new vehicle launches. At the same time, the company believes
cost control measures will boost its bottom-line growth. It
currently retains a Zacks Rank #3 (Hold).
Gentherm Incorporated ( THRM ) with a Zacks
Rank #1 (Strong Buy) is performing well in the industry where
General Motors operates.