General Motors Company (GM - Free Report) and Hyundai have reached an agreement to explore future collaboration in several strategic areas aimed at cutting costs and improving efficiency. They are considering co-development and production of passenger and commercial vehicles, including internal combustion engines, as well as clean energy solutions like electric and hydrogen technologies.
This nonbinding memorandum of understanding (MoU) comes as the auto industry is shifting focus toward capital efficiency after years of heavy spending on electric, autonomous and software-based vehicles that have yet to become profitable. The companies will also explore combined sourcing for materials, such as battery components, steel and other areas.
The agreement was signed by Euisun Chung, Hyundai's executive chair, and Mary Barra, GM's chair and CEO. Spokespersons from both companies declined to provide specific details on potential investments or savings. Per Barra, GM and Hyundai bring each of their unique strengths and skilled teams. The company aims to harness the combined scale and innovation of both companies to produce more competitive vehicles for customers and deliver them more quickly and efficiently.
The next step following the signing of the MoU is to assess opportunities and move toward binding agreements.
General Motors is the top-selling automaker in the United States. Its compelling portfolio with strong demand for its quality pickups and SUVs bodes well for delivery growth. The company’s hot-selling brands in America, namely Chevrolet, Buick, GMC and Cadillac, are boosting the top line. GM successfully increased its market share in the United States to 16.6% in the second quarter of 2024, up 1.2 percentage points sequentially. GM’s North American sales surpassed pre-pandemic levels for the first time in four years. Operating margins were also high due to the ongoing optimization of production processes.
Zacks Rank & Other Key Picks
GM currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the auto space are Dorman Products, Inc. (DORM - Free Report) , Blue Bird Corporation (BLBD - Free Report) and Douglas Dynamics, Inc. (PLOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 51 cents and 37 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.58% and 215.89%, respectively. EPS estimates for 2024 and 2025 have improved 65 cents and 80 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PLOW’s 2024 earnings suggests year-over-year growth of 60.4%. EPS estimates for 2024 have improved 15 cents in the past 60 days.
General Motors Company (GM - Free Report) and Hyundai have reached an agreement to explore future collaboration in several strategic areas aimed at cutting costs and improving efficiency. They are considering co-development and production of passenger and commercial vehicles, including internal combustion engines, as well as clean energy solutions like electric and hydrogen technologies.
This nonbinding memorandum of understanding (MoU) comes as the auto industry is shifting focus toward capital efficiency after years of heavy spending on electric, autonomous and software-based vehicles that have yet to become profitable. The companies will also explore combined sourcing for materials, such as battery components, steel and other areas.
The agreement was signed by Euisun Chung, Hyundai's executive chair, and Mary Barra, GM's chair and CEO. Spokespersons from both companies declined to provide specific details on potential investments or savings. Per Barra, GM and Hyundai bring each of their unique strengths and skilled teams. The company aims to harness the combined scale and innovation of both companies to produce more competitive vehicles for customers and deliver them more quickly and efficiently.
The next step following the signing of the MoU is to assess opportunities and move toward binding agreements.
General Motors is the top-selling automaker in the United States. Its compelling portfolio with strong demand for its quality pickups and SUVs bodes well for delivery growth. The company’s hot-selling brands in America, namely Chevrolet, Buick, GMC and Cadillac, are boosting the top line. GM successfully increased its market share in the United States to 16.6% in the second quarter of 2024, up 1.2 percentage points sequentially. GM’s North American sales surpassed pre-pandemic levels for the first time in four years. Operating margins were also high due to the ongoing optimization of production processes.
Zacks Rank & Other Key Picks
GM currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the auto space are Dorman Products, Inc. (DORM - Free Report) , Blue Bird Corporation (BLBD - Free Report) and Douglas Dynamics, Inc. (PLOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 51 cents and 37 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.58% and 215.89%, respectively. EPS estimates for 2024 and 2025 have improved 65 cents and 80 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PLOW’s 2024 earnings suggests year-over-year growth of 60.4%. EPS estimates for 2024 have improved 15 cents in the past 60 days.
Get the latest research report on GM - FREE
Get the latest research report on PLOW - FREE
Get the latest research report on DORM - FREE
Get the latest research report on BLBD - FREE