General Motors Company ( GM ) signed an agreement
to purchase the original Durant-Dort Carriage Co. facility in
Flint, Mich. The 133-year old Flint facility, which is the birth
place of General Motors, is known as the Factory One and spans
25,000 square feet.DENSO CORP (DNZOY): Get Free ReportGENERAL MOTORS (GM): Free Stock Analysis ReportSTRATTEC SEC CP (STRT): Free Stock Analysis
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In addition to the purchase, General Motors plans to act as the
curator of the Durant-Dort office building and covert it to a
museum with the original boardroom. Currently, the building is
being maintained by Flint Historical Foundation. The repair and
maintenance of the building is very costly. Henceforth, General
Motors will pay for the maintenance and repairs.
General Motors will invest $215 million in Flint Engine
Operations, which is a part of $331.8 million total investment in
four of the manufacturing facilities. With this strategy, the
automaker will be saving 1,000 jobs.
The 1.4-liter Ecotec gas engine will be produced in the Flint
Engine Operations. This is part of new family of engines of three
to four cylinders, with engine displacement ranging from 1.0 to 1.5
General Motors is a leading global automotive company. The company
has presence in almost 120 countries and has facilities located in
30 countries. It currently retains a Zacks Rank #3 (Hold).
General Motors reported a 28.0% fall in earnings to 67 cents per
share in the first quarter of the year from 93 cents in the same
quarter of 2012 (all excluding special items) due to lower revenues
generated from the company's all geographic operations except
Europe. Despite this, the automaker's earnings exceeded the Zacks
Consensus Estimate by 11 cents per share.
Revenues in the quarter slid 2.4% to $36.9 billion, despite a 3.6%
rise in retail unit sales to 2.4 million vehicles globally. It was
higher than the Zacks Consensus Estimate of $36.4 billion.
Few stocks that are performing well in the broader industry
include Visteon Corp. ( VC ), STRATTEC
Security Corporation ( STRT ) and
Denso Corp. ( DNZOY ). All carrying
a Zacks Rank #1 (Strong Buy).