NEW YORK (TheStreet) -- General Motors GM announced Wednesday that is plans to build 2.5 million "Ecotec" engines to power 27 models by the 2017 model year.
Shares of GM fell 0.7% to $34.92.
GM expects the smaller, efficient engine type will be in 25% of all vehicles it sells across several segments including minicars, mid-sized cars, and crossovers. The Ecotec engine will be more cost-effective for the automaker as it builds to scale. There are 11 different models included in the new line of engines, all based on the same design.
GM's current most often use engine is a 3.6-liter engine used in between 800,000 and 1 million cars and crossovers every year.
The automaker will split production of the new Ecotec engine between plants in the U.S., China, Hungary, South Korea, and Mexico.
TheStreet Ratings team rates GENERAL MOTORS CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL MOTORS CO (GM) a BUY. This is driven by some important positives, 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, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."