According to Reuters,
General Motors Company
) is planning to increase its workforce at the new information
technology center in Austin, Texas, by adding up to 500 workers.
The new employees will be engaged for improving the internal
information technology capabilities of the company.
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
To read this article on Zacks.com click here.
The planned workforce expansion represents the first move by the
company to achieve its goal of brining majority of its IT workers
in-house, which will enhance its efficiency and productivity over
the next three years. Thus, the company plans to employ software
developers, database experts and others in Austin. Apart from
Austin, the company also plans to open three more information
technology centers in the U.S.
General Motors outsources about 90% of its IT work and the
remaining 10% is done internally. The company now plans to reverse
the situation and bring innovation and development in its IT
segment. This strategy will support the overall business of the
General Motors, in the second quarter of 2012, registered a 41%
decline in its profit to $1.49 billion or 90 cents per share from
$2.52 billion or $1.54 in the corresponding quarter of 2011.
Nevertheless, the earnings per share exceeded the Zacks Consensus
Estimate by 15 cents.
Total revenues fell 4.5% year over year to $37.60 billion in the
quarter, missing the Zacks Consensus Estimate of $37.98 billion.
The declines in the profit and revenues were attributable to
strengthening of U.S. dollar against most of the major currencies
as well as weak macroeconomic conditions globally, especially in
Europe and South America.
The company's competitor
Ford Motor Co.
) is increasing its workforce at the Flat Rock Assembly plant by
adding roughly 1200 workers to produce the 2013 Fusion sedan.
Currently, General Motors retains a Zacks #3 Rank, which translates
into a short-term Hold rating.