General Motors Company (GM) Stock Rises On Sales Strength


General Motors Company (NYSE:GM) seems to be unfazed by all the recent recalls. The automaker reported a 19% increase in sales year over year for September. GM delivered more than 223,000 vehicles during the month.

GM sees sales rise in September

The company reported a 17% increase in retail deliveries and a 30% increase in fleet deliveries. General Motors said that was the eleventh month in a row in which it recorded a commercial sales increase.

Q2 Hedge Funds Resource Page Now LIVE!!! Lives, Conferences, Slides And More [UPDATED 7/5 21:37 EST]

Q2 Hedge Funds Resource PageSimply click the menu below to perform sorting functions. This page was just created on 7/1/2020 we will be updating it on a very frequent basis over the next three months (usually at LEAST daily), please come back or bookmark the page. As always we REALLY really appreciate legal letters and tips on hedge funds Read More

The automaker also said that it’s on track to hit an operating margin of 10% in the early 2020s. CEO Mary Barra said they will do this through a combination of improvements in marketing and products, cost cuts, and changes in their business model.

If GM is able to deliver on its aggressive plans, it will beat Ford Motor Company (NYSE:F), reports The Wall Street Journal. Ford has said it’s targeting an 8% to 9% operating margin in the long term. Ford also said that pressure in the near term is causing them to retreat from previously announced targets, like profitability in the near term and the recovery of its European operations.

General Motors updates recall issues

Along with updating its sales numbers, GM also updated the status of its many recalls. Barra said they have enough parts to fix all of the bad ignition switches. At least 23 people have died as a result of those faulty switches.

She said suppliers were done manufacturing the parts just a few days before their goal of early this month, reports the Star Tribune. So far, GM said it has repaired approximately 1.1 million of the 2.6 million cars it recalled in February. Barra added that they’re trying to get the owners of the other vehicles to take their cars in so they can replace the switches.

In addition, the executive said they do not expect to spend any more than the $400 million to $600 million they had previously projected on compensation for victims of the crashes caused by the ignition switches.