Yahoo Finance General Motors (GM) Plans to Invest Over $1B in Flint Plants
General Motors Company GM sets forth its plans to invest over $1 billion in two of its Flint manufacturing sites, namely Flint Assembly and Flint Metal Center. GM is developing both sites for producing next-generation ICE heavy-duty trucks. This investment will consolidate General Motors’ industry-leading full-size truck business. The legendary auto manufacturer has not yet disclosed product details or the time of release for its future heavy-duty trucks.
With this announcement, GM’s U.S. manufacturing and parts distribution facility has committed more than $30.5 billion in investment since 2013.
This $1 billion investment will strengthen GM’s U.S. manufacturing operations, which include over 50 assembly, stamping, propulsion and component plants and parts distribution centers nationwide. It also underscores the automaker’s commitment to provide a strong portfolio of ICE vehicles to its customers in the future.
With the sales of 288k trucks in 2022, the automaker registered a 38% year-over-year increase in heavy-duty truck sales.
GM will invest $788 million in Flint Assembly to prepare it to manufacture GM’s next-generation ICE heavy-duty trucks. Body shop building expansion, general assembly conveyor expansion and new tooling and equipment will be included in the updated plant. It will invest $233 million in Flint Metal Center for new stamping dies for GM’s next-generation ICE heavy-duty trucks, as well as press refurbishments and new equipment.
In 2023, General Motors has announced over $1.7 billion of investment in Flint region operations, including $579 million in Flint Engine Operations and $103.5 million in Davison Road Processing Center.
General Motors’ compelling electric vehicle and ICE portfolio and strong demand for its quality full-size pickups and full-size SUVs are bolstering its prospects. The firm’s target of achieving 12% CAGR in revenues through 2025 sparks optimism.
On the flip side, the company’s rising debt levels and macroeconomic headwinds like high commodity and logistic costs are weighing on its near-term prospects. Supply-chain disruptions (although gradually improving) still remain a concern.
Zacks Rank & Key Picks
GM currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked players in the auto space are Ford Motor F, Mercedes-Benz Group AG MBGAF and Wabash National WNC, all of which carry the same rank as GM.
Ford is one of the leading automakers in the world. The Zacks Consensus Estimate for F’s 2023 sales implies year-over-year growth of 7.6%.
Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 6%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings indicates year-over-year growth of 12% and 90.7%, respectively.
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