General Motors Company
) has recently introduced the upgraded version of Chevrolet
Silverado and GMC Sierra at Pontiac. The new vehicle is expected
to hit the market in the second quarter of 2013.
The truck market is witnessing growth after five years of
stagnation. The company expects the new 2014 trucks, which were
last revamped in 2007, to boost its results. In addition,
recovery of the housing industry and rising demand for
replacement of the aging vehicles will have favorable impacts on
the company's performance.
These new trucks will also help General Motors to withstand stiff
competition from trucks manufactured by
Ford Motor Co.
. Given its light weight, which is around 200 pounds lighter than
trucks of the competitors, the vehicle will provide better gas
The new trucks from General Motors features updated steering,
suspension and brakes together with an aggressive look. It comes
with three different engines including a 262-horsepower,
4.3-liter V6 engine, a 325-horsepower, 5.3-liter V8 engine and a
376-horsepower, 6.2-liter V8 engine.
General Motors posted a 9.7% decline in its 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. 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.
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis
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