According to sources at the United Auto Workers union, General Motors Company intends to close five auto assembly plants in the United States for different time stretches in January in order to ease sedan oversupply. Yesterday the NYSE-listed company confirmed this information.
General Motors shares closed higher for a third consecutive trading session on Monday. The stock inched up 0.08% ($0.03) to $36.40, after going up as high as $36.72, or a level not seen since December 14th ($36.78). The daily rate of increase has been the smallest since November 21st, when the stock gained a mere 0.03%. In the week ended on December 18th General Motors shares retreated 3.43% compared to a week ago, which marked their first drop in the past four weeks and also the worst performance since the week ended on September 11th. However, the stock has extended its advance to 5.42% so far during the current month, following a 9.27% surge in November. The latter has been the largest monthly gain since October 2015. Back then the stock appreciated 16.29%.
The Detroit-Hamtramck plant in Michigan as well as the Fairfax factory in Kansas are to be closed for a period of three weeks in January. At the same time, the Lansing Grand River plant in Michigan is to be shut for two weeks, while the Lordstown plant in Ohio and the Bowling Green factory in Kentucky will be closed for a one-week period each.
Ohios Lordstown plant manufactures GMs Chevrolet Cruze, while Michigans Lansing Grand River plant focuses on the Cadillac ATS and CTS models. A sharp drop in sales of each of these three models has already been reported during the period through November compared to the same months a year ago.
The S&P 500-featured vehicle manufacturer has recently reported an expansion in its inventories. In October, General Motors stated its US dealer inventory grew by 111 000 vehicles. At the end of November the company reported 84 days of US supply of unsold new vehicles in comparison with 79 days reported at the end of October. The auto maker plans to reduce current oversupply after the end of 2016.
On Monday a spokesperson from the company said that General Motors is to target approximately 70 days of inventory, according to Reuters.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the General Motors stock are presented as follows:
R1 – $36.45
R2 – $36.51
R3 (Range Resistance – Sell) – $36.56
R4 (Long Breakout) – $36.72
R5 (Breakout Target 1) – $36.91
R6 (Breakout Target 2) – $36.98
S1 – $36.35
S2 – $36.29
S3 (Range Support – Buy) – $36.24
S4 (Short Breakout) – $36.08
S5 (Breakout Target 1) – $35.89
S6 (Breakout Target 2) – $35.82
By using the traditional method of calculation, the weekly levels of importance for General Motors Company (GM) are presented as follows:
Central Pivot Point – $36.63
R1 – $37.48
R2 – $38.59
R3 – $39.44
R4 – $40.29
S1 – $35.52
S2 – $34.67
S3 – $33.56
S4 – $32.45
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