General Motors Company
) has announced that it will launch its new sports utility vehicle
(SUV) Chevrolet Trax at the Paris Motor Show in September 2012. The
five-seated Chevrolet Trax will provide flexibility and fuel
economy to the customers with superior cargo space.
The vehicle will be available in more than 140 markets, with
Mexico and Canada the first to introduce it in the fourth quarter
of 2012. There is, however, no immediate need to launch Chevrolet
Trax in the U.S. and Canada since Chevrolet Equinox, a car similar
in size, already occupies a leading position in these two
Besides Trax, Chevrolet has recently launched new Malibu
mid-sized cars, Colorado mid-sized pickup trucks, TrailBlazer SUV
and Cruze Station Wagon. With its entry into the SUV segment,
Trax offers Chevrolet the required flexibility, toughness and fuel
economy, exhibiting the standards of expensive vehicles.
General Motors posted first-quarter 2012 adjusted earnings per
share of 93 cents, down 2 cents from the year-ago quarter. The
results beat the Zacks Consensus Estimate of 84 cents. The
year-over-year decline in profit was attributable to lower profits
from the company's European operations.
Revenues went up 4% to $37.8 billion in the quarter, driven by a
3% rise in unit sales (to 2.3 million vehicles globally). It was
higher than the Zacks Consensus Estimate of $36.4 billion.
With its record sales in fiscal 2011 and first quarter of 2012
and new product lines, the company would now concentrate more on
meeting customer requirements and enhance future performance.
Detroit, Michigan-based General Motors Company is a leading
global automotive company. The company along with its strategic
partners, produces, sells and services cars, trucks and parts under
four core brands -Chevrolet, Buick, GMC and Cadillac. It also
assembles passenger cars, crossover vehicles, light trucks, sport
utility vehicles, vans and other vehicles. The company's major
Ford Motor Co.
General Motors currently retains a Zacks #3 Rank, which
translates into a short-term (1 to 3 months) Hold rating. The
company has growth opportunities from the emerging markets. Sales
will also be boosted by the rising demand in the industry and
However, high debt level and the Euro-zone crisis have weighed
on General Motors. Taking these factors into account, we currently
have a long-term (more than 6 months) Neutral recommendation on the
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