General Motors Company
) plans to shift a large part of its production of subcompact SUV
Opel Mokka, aka Buick Encores in North America and China, from
South Korea to Spain in order to improve the proximity with the
European market and reduce losses of the luxury division Opel.
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The automaker decided to produce the vehicle at Opel's unit in
Zaragoza. It has received orders of more than 100,000 Mokkas
since its launch half a year ago. Demand for the vehicle remained
strong but there were supply bottlenecks.
Opel Mokka hit the headlines a couple of months back when General
Motors recalled 144 units of its 2013 model in order to fix
their steering wheel fastener that may not have been properly
installed. The vehicles were built by GM Korea between Dec 9 and
Dec 28 last year.
General Motors, a Zacks Rank #3 (Hold) stock, 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 earnings 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.
Net earnings fell 31.3% to $1.1 billion from $1.6 billion in the
first quarter of 2012. Including net loss from special items,
earnings were $0.9 billion or 58 cents per share in the quarter
compared with $1.0 billion or 60 cents a year ago.
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 where
GM operates include
Toyota Motor Corp.
) with Zacks Rank #1 (Strong Buy) and
Honda Motor Co.
), both with Zacks Rank #2 (Buy).