Share price of General Motors Company (GM) declined 2.5% to $33.43 on Jan 15, 2015 due to a decline in the overall market. However, on a positive note, the automaker recorded a 2% increase in global sales to 9,924,880 vehicles in 2014.
General Motors recorded better results in 2014, driven by its focus on customers and the launch of new vehicles, trucks and crossovers in China and North America. The automaker also launched innovative technologies like OnStar with 4GLTE. These were offset by challenging market conditions in different parts of the world.
General Motors launched many vehicles including the new Opel Corsa, which will be sold in Europe by the end of this month. It also launched the Chevrolet Trax small crossover in the U.S. in Dec 2014.
Moreover, the automaker is increasing the U.S production of the Chevrolet Colorado and GMC Canyon mid-size pickups. General Motors is focusing on emerging markets to recoup its global sales by increasing capacity investment to meet the growing demand. It is also expanding the OnStar technology in Europe and has launched the 4GLTE service in China.
General Motors’ sales from different geographic locations also improved significantly in 2014. The automaker delivered 3,412,714 units in North America in 2014, up 6% year over year. As a result, General Motors’ estimated market share of 16.9% was equivalent to the 2013 level. The improved results in North America were driven by the launch of redesigned full-size pickups and large SUVs by Chevrolet, GMC and Cadillac Escalade. Dealers delivered 1 million vehicles in the U.S, 11% higher than the year-ago figure. Increased deliveries enhanced the average transaction price to $33,900.
General Motors and its joint ventures in China reported a 12% year-over-year increase in sales in the nation in 2014, taking the figure to 3,539,972 vehicles. The improved performance was driven by overall better performance in the Chinese auto market along with rising demand in the luxury, SUV and MPV segments.
In 2014, the automaker, along with its Chinese joint ventures, expanded the lineup by launching many new and refreshed models in China, such as the Buick Envision premium midsize SUV, the Chevrolet Trax urban SUV and Sail 3 family car, the Cadillac ATS-L luxury sport sedan, and the Baojun 730 family vehicle.
Currently, General Motors carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks include Meritor, Inc. (MTOR), PACCAR Inc. (PCAR) and Magna International Inc. (MGA). All these stocks carry a Zacks Rank #2 (Buy).
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