This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

GM Puts Obama in the Driver's Seat

In the U.S., GM's market share has diminished to 18.6% from 20.5% a year ago. But the company's outlook is bolstered by the impending arrival of new products, with 70% of its models scheduled to be redesigned or replaced in 2012 and 2013. Those plans are boosting employment.

In the first half, GM's hourly employment grew by about 2,000 workers to 50,000, while overall North American employment grew by about 3,000 workers to 101,000, according to the company's earnings filing. Spokesman James Can said the bulk of the new jobs are at the Hamtramck, Mich., plant, where the new Chevrolet Malibu is being built, and the Spring Hill, Tenn., factory, where the new Chevrolet Equinox will be made. Next year, GM will add a third shift in Arlington, Texas, to manufacture large SUVs.

Amman told reporters Thursday afternoon that the hiring is "more tactical than anything else given the environment we're in.

"We're cautious on the economic environment, (but) we're not afraid to add people and capacity" when needed, he said.

S&P Capital IQ analyst Efraim Levy, who has a "buy" on GM's stock, wrote Thursday that North America showed strength even as Europe and South America weakened. "Slowing growth is a risk, but U.S. sales are supported by pent-up demand," he said. Jefferies analyst Peter Nesvold said GM beat expectations in North America, Europe and Asia, while missing by a penny in South America. Europe "was the bigger story," he wrote. "GM held pricing despite industry pressures."

In early afternoon trading, GM shares were down 58 cents to $19.08. The automaker said some spending was deferred from the second quarter to the third quarter, potentially reducing third-quarter earnings.

GM will file third-quarter results close to the Nov. 6 election, which could keep Obama riding high. Analysts are estimating that GM will earn 73 cents, a penny less than the second-quarter consensus estimate, but revisions are likely.

>To follow the writer on Twitter, go to http://twitter.com/tedreednc.

>To contact the writer of this article, click here: Ted Reed

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs