General Motors CompanyGM is set to transfer its Vietnamese operation to VinFast Trading and Production LLC, a unit of Vietnam's biggest private conglomerate - Vingroup JSC, per Reuters. General Motors intends to distribute Chevrolet cars through this local carmaker and anticipates this to boost its sales.
General Motors is likely to transfer the full ownership of its Hanoi factory, dealer network and employee base to VinFast by the end of 2018. Subsequently, from 2019, small cars will be produced under a GM global license.
General Motors used its Hanoi plant to assemble Chevrolet vehicles, with parts imported from South Korea. GM Korea is the biggest production base of General Motors in Asia, excluding China. The latest GM-VinFast partnership will be beneficial for the Chevrolet brand. Domestic strength, the insight of VinFast, and the global scale and expertise of General Motors will bolster this partnership.
In the past year, shares of General Motors have outperformed the industry it belongs to. During the period, its stock has gained 16% in comparison with the industry's increase of 1.9%.
General Motors currently has a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Ferrari N.V. RACE and Fox Factory Holding Corp. FOXF . While both Allison Transmission and Ferrari sport a Zacks Rank #1 (Strong Buy), Fox Factory Holding carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Allison Transmission Holdings has an expected long-term growth rate of 10%. Over the past year, shares of the company have gained 6.4%.
Ferrari has an expected long-term growth rate of 17.3%. Over the past year, shares of the company have gained 57%.
Fox Factory Holding has an expected long-term growth rate of 11.5%. Shares of the company have risen 30.2% over the past year.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportGeneral Motors Company (GM): Free Stock Analysis ReportFox Factory Holding Corp. (FOXF): Free Stock Analysis ReportAllison Transmission Holdings, Inc. (ALSN): Free Stock Analysis ReportFerrari N.V. (RACE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research