General Motors Company (GM) is reportedly enlarging its workforce in the Detroit-Hamtramck assembly plant by adding 200 new workers. The decision comes in the wake of rising demand prior to the beginning of the production of 2013 Chevrolet Malibu.
Currently, the assembly plant employs about 1,350 people. Around 1,200 employees work on hourly basis and the remaining 150 are General Motors’ salaried employees. The plant at present operates on a shift basis which entails working for ten hours per day and four days per week.
The Detroit-Hamtramck factory products include Chevrolet Volt, Opel Ampera and Chevrolet Malibu (to be launched in 2013). The plant will also build the new 2014 Chevrolet Impala. The company has invested $336 million for Chevrolet Volt and Opel Ampera, roughly $121 million for Chevrolet Malibu and $69 million for Chevrolet Impala.
Like General Motors, Chrysler is also providing job opportunities in Detroit. Its Jefferson North Assembly Plantmainly produces Jeep Grand Cherokee. The company, in order to increase the production, would add a third shift to the assembly.
Chrysler announced in December 2011 that it will reopen the Conner Avenue Assembly Plant in Detroit for the production of the next-generation SRT Viper. With this, the company will be providing job opportunities for 1,250 workers, both salaried and hourly workers.
Detroit, Michigan-based General Motors Company is a leading global automotive company. The company along with its strategic partners, produces, sells and services cars, trucks and parts under four core brands –Chevrolet, Buick, GMC and Cadillac. It also assembles passenger cars, crossover vehicles, light trucks, sport utility vehicles, vans and other vehicles. The company’s major competitors are Ford Motor Co. (F) and Toyota Motor Corp. (TM).
General Motors currently retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating. The company has growth opportunities from the emerging markets. Sales will also be boosted by the rising demand in the industry and diversified lineups.
However, high debt level and the Euro zone crisis have weighed on General Motors. Taking these factors into account, we currently have a long-term (more than 6 months) Neutral recommendation on the stock.
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