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GM Prices Its Bolt Electric Car, Setting an Industry Standard

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General Motors’ price movement

General Motors (GM) has a market cap of $49.7 billion. It fell 0.22% to close at $31.65 per share on September 20, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.3%, 0.62%, and -3.4%, respectively, on the same day.

GM is trading 1.0% above its 20-day moving average, 1.9% above its 50-day moving average, and 4.8% above its 200-day moving average.

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Related ETF and peers

The Guggenheim Multi-Asset Income ETF (CVY) invests 0.96% of its holdings in General Motors. The ETF tracks the Zacks Multi-Asset Income Index. The index aims to outperform the Dow Jones US Select Dividend Index using US stocks, ADRs (American depositary receipts), REITs, MLPs, CEFs (closed-end funds), preferred stocks, and royalty trusts. The YTD price movement of CVY was 7.3% on September 20.

The market caps of General Motors’ competitors are as follows:

  • Toyota Motor (TM): $197.7 billion
  • Ford Motor (F): $47.7 billion

Latest news on General Motors

In a press release on September 20, 2016, Reuters reported, “General Motors Co. on Tuesday announced its Chevrolet Bolt electric vehicle will cost under $30,000 after tax breaks, a price that makes it significantly cheaper than the average new U.S. vehicle and sets up a test of whether the technology can go mainstream in the United States.”

The report went on to say, “The least expensive Bolt will start at $37,495 before a $7,500 federal tax credit, meaning it would sell for $29,995, GM said.”

In another release, Bloomberg reported, “Canada’s auto union reached a tentative agreement with General Motors the labor group says secures production, saves jobs and stems a wave of investment to cheaper locations such as Mexico.”

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The report also stated, “GM will invest C$400 million ($300 million) to upgrade its flex line and build a new vehicle in Oshawa, Ontario, and C$120 million in its engine and transmission plant in St. Catharines, Ontario, according to a person familiar with the deal. The investment would render Oshawa the only plant in North America to build both trucks and cars, easing fears of potential closure in 2019, said Jerry Dias, president of Unifor. The agreement would also stabilize the future of St. Catharines by moving work from Mexico, he said.”

Sales for General Motors in August 2016

General Motors’ (GM) sales performances in August 2016 were as follows:

  • General Motors reported total sales of more than 256,000 units, a fall of 5.2% from August 2015.
  • General Motors reported retail sales of nearly 213,000 units, a fall of 5.4% from August 2015.
  • Chevrolet reported total sales of ~176,000 units, a fall of 3.9% from August 2015.
  • GMC reported total sales of more than 42,000 units, a fall of 14.0% from August 2015.
  • Buick reported total sales of nearly 22,000 units, a fall of 2.7% from August 2015.
  • Cadillac reported total sales of more than 16,000 units, a rise of 3.9% from August 2015.

GM has reported total sales of more than 1.9 million units YTD, which represents a fall of 4.2% from the same period in the prior year. Among the company’s segments, large van sales rose 18% in August 2016, and small business sales rose 3% YTD. It’s worth noting that daily rental deliveries fell 34.0% in August 2016.

In the next part of our series, we’ll take a look at Sonoco Products (SON).

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