NEW YORK (TheStreet) -- General Motors (GM) rose on Tuesday after the U.S. automaker announced it would invest $449 million into two factories in the Detroit area to build the next generation of Chevrolet Volt hybrid cars and two new, unspecified vehicles.
General Motors said the investment would lead to a second shift at its Detroit assembly plant, which currently makes the Volt and other vehicles. The company did not specify a time frame or how many jobs the investment would create.
The company plans to invest $384 million in the assembly plant, which currently employs approximately 1,600 people, and $65 million in a battery pack plant in the Brownstown Township.
Furthermore, GM did not announce details about the next generation Volt. The current model can travel approximately 38 miles on battery power, at which point a small gasoline generator activates. As for the two unspecified vehicles, The Associated Press reports that GM spokesman Dave Darovitz would not identify them but the media outlet stated "one is likely to be a new large rear-wheel-drive Cadillac now code-named the Omega."
The stock was up 1.23% to $34.53 at 3:33 p.m.
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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 a few notable 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, 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."