General Motors Company
) is planning to manufacture the next-generation electric
vehicles (EV) in South Korea to boost the stalling vehicle
technology. This new electric car will be produced in the
Bupyeong plant, near Seoul.
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LG Chem. Ltd. of South Korea will be supplying the batteries for
the second-generation electric vehicles of General Motors. The
electric car will be bigger in size and newly designed than the
Spark small car. The existing, the Spark electric car is based on
the prior gasoline engine model.
The Spark electric vehicle is produced in the Korean plant and
will be available in South Korea and Europe from the second half
of 2013. The Korean unit of General Motors produces 40% of
Chevrolet-branded vehicles. The other vehicle produced in the
Bupyeong plant includes Aveo, Trax, Captiva and Malibu.
Other automakers like
Nissan Motor Co.
) with its electric car Leaf are also trying to occupy a
significant market position. However, higher price of the
vehicle, limited driving range and lack of charging
infrastructure creates challenges for the automaker.
General Motors posted an increase in profits to $0.8 billion or
48 cents per share in the fourth quarter of 2012 compared with
$0.7 billion or 39 cents in the same quarter of 2011. The
earnings per share missed the Zacks Consensus Estimate by a
Revenues moved up 3.4% to $39.3 billion in the quarter, higher
than the Zacks Consensus Estimate of $38.6 billion. Unit sales
escalated 4.2% to 2.3 million vehicles. The improvement was
driven by an increase in worldwide sales volume to 2.3 million
General Motors expects to boost its top-line in 2013 with the
help of new vehicle launches. At the same time, the company
believes cost control measures will boost its bottom-line growth.
It currently retains a Zacks Rank #3 (Hold).
) with a Zacks Rank #1 (Strong Buy) is performing well in the
industry where General Motors operates.