Per Bloomberg, General Motors Company GM plans to shut down its Oshawa operations situated in Ontario, Canada. At present, the hub has two assembly lines; one manufactures pick-up trucks while the other builds sedans. The models that are currently being manufactured in the hub include — Cadillac XTS, Chevrolet Impala, Chevrolet Silverado and GMC Sierra. The facility is one of the largest auto manufacturing plant in Canada and employs approximately 300 salaried workforces and 2,500 union staff. Apart from Oshawa, General Motors also operates factories in Ingersoll and St. Catharines, Ontario.
In 2016, the Oshawa factory was saved from closing by Unifor, a union that embodies autoworkers in Canada. As part of the settlement, this Detroit-based automaker agreed to invest $302 million for the development of the plant’s operations.
The latest move is an effort by General Motors to cut costs as part of its initiative to restructure global operations. The company aims to focus and invest more in self-driving and electric vehicles by saving through production cost cuts.
General Motors Company Price and Consensus
General Motors Company Price and Consensus | General Motors Company Quote
Canada’s automotive industry is already struggling to attract investments and preserve existing jobs. But, higher labor costs and other operating expenses in the country make this industry a less profitable option than manufacturing plants in the United States and Mexico.
Over the past month, General Motors’ stock has gained 8.5%, outperforming 2.6% increase recorded by the industry it belongs to.
Zacks Rank & Other Key Picks
General Motors currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the auto space are Oshkosh Corporation OSK, AutoZone, Inc. AZO and Tesla, Inc, TSLA, each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oshkosh has an expected long-term growth rate of 14.6%. Shares of the company have increased 27.2% over the past month.
AutoZone has an expected long-term growth rate of 12.2%. Shares of the company have rallied 10.8% over the past month.
Tesla has an expected long-term growth rate of 35%. Over the past three months, shares of the company have gained 2.1%.
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