According to a report by the Wall Street Journal, citing people with knowledge of the situation, production at General Motors’ assembly plant in Detroit is to be scaled back, while approximately 1 500 workers – laid off. However, the auto maker refused to comment on the matter.
General Motors shares closed lower for a second time in the past nine trading sessions on Thursday. It has also been the steepest daily loss since September 7th. The stock went down 1.28% ($0.58) to $44.89, after touching an intraday low at $44.22, or a price level not seen since October 6th ($44.00).
In the week ended on October 8th the shares of the largest vehicle manufacturer in the United States added 11.27% to their market value compared to a week ago, which marked a fourth consecutive period of gains and also the best performance since the week ended on January 8th 2012.
The stock has pared its advance to 11.17% so far during the current month, following a 10.51% surge in September. The latter has been a fourth consecutive monthly gain and also the largest one since October 2015.
For the entire past year, General Motors shares gained 2.44%. The stock has risen 28.85% so far in 2017.
GM’s Detroit-Hamtramck plant, which manufactures 4 sedan models including Buick LaCrosse and Chevrolet Impala, is planned to be closed for about six weeks, starting in mid-November. As soon as the facility resumed operations, about 20% of production there would be reduced, the WSJ reported yesterday.
Sales of Buick LaCrosse have shrunk 21.5% so far this year, while those of Chevrolet Impala have dropped 31.8%.
Reuters reminded that General Motors had already discontinued the second shift at its Detroit-Hamtramck plant earlier in 2017.
In September the auto maker said that the third shift at another facility – in Spring Hill, Tennessee, would be discontinued in late November.
The shifts, which have been cut by the company so far, provided employment for 6 000 hourly and salaried workers.
According to a spokesperson for GM, lay-offs have affected 2 300 temporary workers as well as 800 hourly, union-represented workers, or a total of 3 100 jobs have so far been cut.
On the other hand, alternative work has been ensured for 2 900 hourly workers.
Leading US auto makers have been trying to trim amassed inventories of passenger vehicles, with customers’ focus already shifting to SUVs and pickup trucks.
According to CNN Money, the 24 analysts, offering 12-month forecasts regarding General Motors stock price, have a median target of $39.80, with a high estimate of $53.00 and a low estimate of $31.00. The median estimate is an 11.34% decrease compared to the closing price of $44.89 on October 12th.
The same media also reported that 14 out of 27 surveyed investment analysts had rated General Motors’ stock as “Hold”, while 9 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.
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 – $45.00
R2 – $45.11
R3 (Range Resistance – Sell) – $45.22
R4 (Long Breakout) – $45.55
R5 (Breakout Target 1) – $45.94
R6 (Breakout Target 2) – $46.11
S1 – $44.78
S2 – $44.67
S3 (Range Support – Buy) – $44.56
S4 (Short Breakout) – $44.23
S5 (Breakout Target 1) – $43.84
S6 (Breakout Target 2) – $43.67
By using the traditional method of calculation, the weekly levels of importance for General Motors Company (GM) are presented as follows:
Central Pivot Point – $43.63
R1 – $46.47
R2 – $48.00
R3 – $50.84
R4 – $53.67
S1 – $42.10
S2 – $39.26
S3 – $37.73
S4 – $36.19
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