General Motors Company
) is opening the second of its four planned Information Technology
Innovation Center in Warren, Michigan. The company pans to hire up
to 1,500 high-tech employees over the next few years to support its
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
To read this article on Zacks.com click here.
General Motors will hire software developers, database experts,
business analysts and other IT personals for the Michigan plant.
Recent college graduates as well as experienced professionals are
eligible for the positions. In addition, the company is conducting
campus recruitment and participating in local job fairs.
Last month, the company opened the first information technology
center in Austin, Texas. This facility provided job opportunity to
500 workers, who were engaged for improving the company's internal
information technology capabilities.
Sources reveal that 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. Thus, the company plans to hire 10,000 workers
at four new technology centers over the next three to five years.
This strategy is expected to make it more productive and efficient.
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.
Detroit, Michigan-based General Motors is the largest automobile
manufacturer in the world and one of the 'Big Three' U.S.
automakers. However, like its competitor
Ford Motor Co.
), the company's significant exposure to troubled Europe has
adversely affected its operations in the continent.
Currently, General Motors retains a Zacks #3 Rank, which translates
into a short-term Hold rating. We have a long-term Neutral
recommendation on the stock.