General Motors Company (NYSE:GM) shows bearish sentiments on Monday Pre trading session as shares trading on $39.14 as the firm declared that its main Mexico plant that makes GMC and Chevrolet pick-up trucks will stop production in coming week due supply chain issues. The U.S. leading carmaker will suspend work beginning Aug. 29 and aim to restart Sept. 5, it added.
The three more North American full-size truck manufacturing facilities of GM are not affected. This weekend, the company’s truck assembly factory in Flint, Michigan, will work additional shifts. The firm separately reported that its Bowling Green Assembly in Kentucky will be shut down the coming week as a result of a brief problem with the supply of parts that is unrelated to chips.
To satisfy consumer demand, “General Motors is actively working with its base of suppliers to remedy challenges as they emerge,” according to a statement from GM.
The company proceeded by stating that although North American manufacturing has been “pretty steady” since the third quarter of 2017, supply chain disruptions have persisted. Both the GMC Sierra and the Chevrolet Cheyenne and Silverado pickup trucks are produced in the Silao facility. The Chevrolet Corvette Stingray is produced at Bowling Green by GM.
General Motors (GM) has been transitioning for the past few years at least from being a leader in the manufacturing of full-sized, gas-powered pickup trucks to the production of a full line of high-tech, and contemporary electric cars. The focus and media coverage around this automotive behemoth have all been focused on these initiatives (and the intentions to invest $35 billion on the projects).
On the other side, General Motors Co (GM) recently declared that it will resume quarterly dividend payouts following suspending it over two years before when the COVID-19 pandemic first struck. The global coronavirus pandemic, which negatively damaged sales and production and required the corporation to save funds throughout the crisis, had forced the carmaker to halt dividend payments and share buybacks in April 2020. The carmaker stated in a statement that the first dividend at the rate of 9 cents per share on common stock will be paid on Sept. 15, 2022.
The CEO of leading automaker, Mary Barra stated that GM is investing over $35B over 2025 to advance our growth plan, comprising fast expanding their electric vehicle portfolio and creating a domestic battery manufacturing infrastructure. He added, “Progress on these key strategic initiatives has improved our visibility and strengthened confidence in our capacity to fund growth while also returning capital to shareholders.”