GM Stock Slides, Tabling $1 Billion Investment in India

GM has decided to pause on a $1 billion planned investment in India after sales there plummeted.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of General Motors (GM) - Get Report  are down 0.19% to $32.10 this morning after the company put on hold a planned $1 billion investment and a new car platform launch in India, Reuters reports.

The Detroit-based automaker has previously committed to invest $1 billion in the country to double its share in the domestic passenger vehicle market to 3.6% by 2020 and to make India a major player in global exporting.

GM had also planned on launching a multi-purpose vehicle Spin and a new modular platform to manufacture lower-cost cars for emerging nations.

"The billion dollars was committed based on a certain product portfolio," said VP of Marketing Jack Uppal to Reuters.

GM's India sales fell almost 40% in the year to March 30, accompanying regulatory pressure on diesel-powered vehicles.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

TheStreet Ratings rated this stock as a "buy" with a ratings score of B-.

The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, notable return on equity and attractive valuation levels. TheStreet Ratings feels its strengths outweigh the fact that the company shows low profit margins.

You can view the full analysis from the report here: GM

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