It is rumored that General Motors Company (:GM) may launch an entry-level Chevrolet Corvette, which will be much cheaper compared to the iconic Chevrolet Corvette. Sources revealed that General Motors will launch this version in 2015.
In January this year, General Motors showcased the new 2014 Corvette Stingray before the Detroit auto show. General Motors upgraded the iconic sports car after nine years and the latest version is set for a commercial launch later this summer. The existing Corvette model is priced in the range of $50,000 to $112,600.
The 2014 model is equipped with a 6.2-Liter small-block V-8 engine, which provides 450 horsepower. The engine has high torque or rotational power at low and high revolutions. The fuel efficiency of the vehicle is maintained by the computer-controlled intake, exhaust valves and direct fuel injection. With this, General Motors guarantees that the car will perform better with more fuel efficiency compared to the current model.
The current Corvette offers 16 miles per gallon (mpg) in the city, 26 mpg on the highway and 19 mpg on combined driving. The 2014 model, which comes in seven-speed manual and six-speed automatic transmissions options, is expected to provide better mileage compared with the current model.
The new Corvette is often called the ‘halo car.’ It is also expected that this new car will drive the sales volume of the Chevrolet brand. Chevrolet brand sales in the U.S. went up by 4.9% to 158,541 units in the Feb 2013. General Motors recorded a 7% year-over-year increase in sales to 224,314 vehicles in Feb 2013.
General Motors is a leading global automotive company. The company has a presence in almost 120 countries and has facilities located in 30 countries. General Motors currently retains a Zacks Rank #3 (Hold).
General Motors posted a profit of $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 penny,
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 units.
Few stocks that are performing well in the industry where General Motors operates include Gentherm Incorporated (:THRM), STRATTEC Security Corporation (STRT), and Oshkosh Corporation (OSK). Both Gentherm and STRATTEC carry a Zacks Rank #1 (Strong Buy) while Oshkosh retains a Zacks Rank #2 (Buy).
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