General Motors Company
) is set to showcase the all-new Chevrolet SS rear-wheel-drive
sedan in the Daytona 500 NASCAR Sprint Cup Series motor race in
Florida in February 2013. The new vehicle will hit the market in
the second half of 2013. The company recently unveiled the NASCAR
Sprint Cup racing version of Chevrolet SS in Las Vegas.
Chevrolet SS is the first rear-wheel-drive vehicle in the U.S
after the company stopped marketing Pontiac G8 in 2009. The
vehicle will be produced in Australia using the technology,
infrastructure and engineering of the Holden Commodore
automobile, which was build by the Australian subsidiary of
The new vehicle launch is expected to enhance the company's
business based on the rising demand from the dealers and
customers. The rear-wheel-drive sedan features better
acceleration, braking and handling system than the
Recently, General Motors announced its plans to launch the
electric version of Chevrolet Spark in the ongoing Los Angeles
Auto Show. The new Spark features an electric motor and a 20 kWh
lithium ion battery, making it faster than the gasoline version
of Spark. The company expects that the launch will enhance its
business and provide a low cost alternative to the customers.
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, the
results outpaced the Zacks Consensus Estimate of 61 cents.
Profit ebbed 5.9% to $1.6 billion from $1.7 billion a year ago
due to lower profits from North America and higher loss 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. 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.
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