Updated from 11:50 a.m. EDT to include GM spokesperson comments and competitors' share prices.
NEW YORK (TheStreet) -- General Motors (GM) was rallying during Friday trading on news the automaker could ship an increased number of vehicles made in South Korea to Australia. Shares were up 3.1% to $40.30, adding to its year-to-date gains of 39.8%.
Speaking with Reuters, a source familiar with the matter said GM will up production in South Korea and potentially scrap manufacturing in Australia, in line with its global restructuring plans.
A separate Reuters report alleges General Motors, under the Holden brand in Australia, could shutter its manufacturing plants as soon as 2016. Anonymous senior government sources, speaking with the Australian Broadcasting Corp, said a decision was set to be announced during the week but had been suspended until early 2014.
The Australian auto manufacturing industry has been struggling in recent years under rising costs, a strong dollar and weak exports. Australian Prime Minister Tony Abbott has called on Holden to be transparent with its intentions.
A General Motors spokesperson declined to comment.
TheStreet Ratings team rates General Motors Co as a Buy with a ratings score of B. The team has this to say about their recommendation:
"We rate General Motors Co (GM) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."