General Motors Company (GM) announced that it will invest $68 million at its Oshawa, Ontario assembly plant in Canada for manufacturing the new version of the Chevrolet Impala, on top of an investment of $117 million announced by the company previously for producing the Cadillac XTS at the same plant in 2012.
The total investment will help retain 1,100 jobs at the plant. Currently, it employs more than 4,400 people. The 10 million square feet plant is one of the largest auto plants in the world and has won numerous awards for rolling out quality vehicle models.
The facility has started producing vehicles since 1950s. In the past, it produced Buick Regal, Chevrolet Camaro Convertible and Chevrolet Equinox by adding two shifts and securing 1,300 jobs. Currently, it manufactures the current version of Impala as well as Chevrolet Camaro.
Apart from Canada, GM announced in May this year that it would invest a total of $2 billion at 17 assembly and components plants in 8 states for 18 months in the U.S. Through the investment plan, the automaker intends to create or preserve more than 4,000 hourly and salaried jobs at the plants.
So far, facilities that received investment under the same plan include Kansas City, Kansas; Bowling Green, Kentucky; Arlington, Texas; Bay City, Detroit; Flint, Lansing; Warren, Michigan; Toledo, Ohio; Bedford, Indiana; Wyoming, Michigan; Buffalo, New York; and Spring Hill, Tennessee.
GM, a Zacks #3 Rank (Hold) company, posted an 11% decline in profit to $1.74 billion in the third quarter of the year from $1.96 billion in the same quarter of 2011. Nevertheless, on a per share basis, the profit of $1.03 was higher than the Zacks Consensus Estimate of 99 cents and compared with $1.20 in the third quarter of 2010.
The decline in profit during the quarter was attributable to lower interest income and other non operating income (net), loss on extinguishment of debt and income tax expense.
Meanwhile, GM’s cross town rival Ford Motor Co. (F) posted a $66 million or 3.5% fall in profit to $1.85 billion in the third quarter of the year from $1.91 billion in the same quarter of prior year. However, on a per share basis, earnings were 46 cents versus 48 cents a year ago, beating the Zacks Consensus Estimate of 44 cents. The decrease in profit was attributable to anticipated reductions in Financial Services results.
