General Motors Company
) announced that it will invest around $18.5 million for a new
technology center in the Roswell building, located in Fulton
County, GA, U.S. The technology center is expected to create
employment opportunity for 1,000 workers in the region.
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
UTD PARCEL SRVC (UPS): Free Stock Analysis
To read this article on Zacks.com click here.
The building was formerly used by
United Parcel Service Inc.
) as an information technology, marketing and communications
center. The 230,000-square feet building will now be converted
into a software development center.
The Roswell building is favorably located in a region, where the
local government has provided incentives for economic
redevelopment since it has a poverty rate of more than or equal
to 15%. Consequently, the company will enjoy $3,500 annual income
tax credit for every employment opportunity it creates.
General Motors focuses on establishing technology centers in
Fulton County. Other than the Roswell building, it also uses the
Cobalt Center in Alpharetta in the same County for this purpose.
Previously, Cobalt Center was used by
Sources revealed that General Motors used to outsource most of
its IT work. The company now plans to reverse the situation and
bring innovation and development in its IT segment. As part of
this effort, last year, the company announced plans to hire
10,000 workers at four new technology centers over the next three
to five years to enhance productivity and efficiency. The company
has already opened one of the centers in Austin, Texas.
General Motors posted a 9.7% decline in earnings (excluding
special items) to 93 cents per share in the third quarter of 2012
from $1.03 in the corresponding quarter a year ago. However,
earnings outpaced the Zacks Consensus Estimate of 61 cents.
Profits ebbed 5.9% to $1.6 billion from $1.7 billion a year ago
due to lower profits from North America and higher losses in
Europe. Revenues grew 2.5% year over year to $37.6 billion,
surpassing the Zacks Consensus Estimate of $36.3 billion. The
improvement was driven by an increase in worldwide sales volume
to 2.3 million units.
Detroit, Michigan-based General Motors is the largest automobile
manufacturer in the world and one of the 'Big Three' U.S.
automakers. The company's significant exposure to troubled Europe
has adversely affected its operations in the continent.
The automaker, which competes with
Ford Motor Co.
), currently retains a Zacks Rank #2 (Buy).