General Motors' 3Q15 Earnings Release Sparks a Buying Spree
3Q15 conference call
Automotive companies are facing a new set of challenges from autonomous driving, car sharing, and electric vehicles. During a global business conference held on October 1, 2015, General Motors CEO (chief executive officer) Mary Barra said, “Those facts are the realities of today. Some may find it daunting, but we look at it and see real opportunity.”
During its 3Q15 earnings conference call, the company provided further insight into how it plans to get future-ready.
Barra said during the call, “We intend to lead and win in the future of personal mobility and create new revenue streams that will drive shareholder value.”
Currently, General Motors forms 1.5% of the Wisdom Tree Dividend ex-Financials ETF (DTN).
GM has launched “Let’s Drive New York City,” a car-sharing program for Ritz Plaza tenants. According to GM, this program has received a positive response so far.
According to Barra, General Motors has “more customers connected to their vehicles than the rest of the industry combined.” The company plans to offer personalized solutions to drivers of connected vehicles.
According to GM, by the end of the year, it would be the only automobile company offering 4G connectivity in all three markets of the United States, Europe, and China.
Electric car maker Tesla (TSLA) sees its software as one of its competitive strengths. You can read more about Tesla in An Investor’s Guide to Tesla Motors.
Chinese Government has announced a sales tax cut on the purchase of smaller cars. General Motors expects to benefit from this tax cut. Other automobile companies such as Ford (F) and Volkswagen (VLKAY) are also expected to benefit from the tax cut.
Visit Market Realist’s Autos page to learn more about this industry.
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