General Motors Co (GM) said last week that it intended to create at least 1 200 jobs at its Lansing plants in Michigan, as it seeks to respond to rising demand for its Sport-utility vehicles.
General Motors shares closed lower for a second consecutive trading session in New York on Friday. The stock went down 0.68% ($0.21) to $30.50, after touching an intraday low at $29.33, or a price level not seen since July 8th 2016 ($29.27).
Shares of General Motors Company have retreated 16.67% so far in 2020 compared with an 8.56% loss for the benchmark index, S&P 500 (SPX).
In 2019, General Motors’ stock went up 9.42%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.
General Motors said that it would add a second shift in general assembly at its Lansing Grand River plant, which would create nearly 400 jobs. The move is to support the launch of the Cadillac CT4 and CT5.
The company will also add a third shift at its Lansing Delta Township facility to support production of Chevrolet Traverse and Buick Enclave. The move is to create nearly 800 job positions.
”We are excited to provide these opportunities in Lansing,” Phil Kienle, vice president, GM North American Manufacturing and Labor Relations, said in a press release.
”Our team members have proven experience in building high-quality vehicles and are well-prepared to meet the needs of our customers. This is great news for our manufacturing sites as well as the Lansing community,” he added.
The auto maker has invested over $1 billion in manufacturing at Lansing facilities since 2015. Last year, it invested $36 million at its Lansing Delta Township plant for future production of mid-size SUVs. And in 2018, GM invested $175 million at its Lansing Grand River facility to modernize tooling and equipment for the Cadillac CT4 and CT5.
Analyst stock price forecast and recommendation
According to CNN Money, the 16 analysts, offering 12-month forecasts regarding General Motors Company’s stock price, have a median target of $46.50, with a high estimate of $68.00 and a low estimate of $34.00. The median estimate represents a 52.46% upside compared to the closing price of $30.50 on February 28th.
The same media also reported that at least 13 out of 19 surveyed investment analysts had rated General Motors Company’s stock as “Buy”, while 4 – as “Hold”.