General Motors Company GM is set to invest an additional $20 million for upgrading the Arlington Assembly plant in Texas, per Reuters. This announcement comes prior to the launch of full-size sports utility vehicles (SUVs). Notably, this investment will not add to the production capacity of the plant.
Arlington Assembly is a large plant in the country, which employs about 4,500 people. Since 2015, the company has invested $1.4 billion in this plant. Moreover, a couple of years ago, General Motors started construction on a supplier park close to the main assembly plant, which was projected to employ 1,250 people.
As the company is preparing to start producing an all-new SUVs, this plant upgrade was required. The plant upgrade will include making improvements in the plant’s conveyance system and refurbishing paint robots.
Year to date, shares of General Motors have outperformed the industry it belongs to. During this time frame, shares of the company have rallied 12.7% compared with the industry’s growth of 0.9%.
Zacks Rank & Stocks to Consider
General Motors currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Ford Motor Company F, Fox Factory Holding Corp. FOXF and Cummins Inc. CMI, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ford has an expected long-term growth rate of 7.3%. Over the past six months, shares of the company have gained 25.3%.
Fox Factory has an expected long-term growth rate of 16.4%. Over the past six months, shares of the company have gained 35.1%.
Cummins has an expected long-term growth rate of 8%. Over the past six months, shares of the company have gained 27.3%.
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