Ford Ramps Up Production in Spain and 4 Auto Stocks to Consider
Ford Motor Company (NYSE:F) and Renault will step up their output capacity in Spain as labor costs are presently 40 percent cheaper than in Germany and France, says The New York Times. Other car makers had previously said they would spend as much as $2.64 billion on the construction of new plants or expanding current factories in Spain, which could lend country a ray of hope.
General Motors Company (NYSE:GM) sees a Sterne Agee analyst hike his estimates on the firm on Friday, commenting that moves to reduce the government’s interest in the automaker should benefit shareholders. The United States bailed out GM during the financial crisis in 2008 and 2009, but in a deal reported earlier in December, the company will shell out $5.5 billion to repurchase 200 million shares from the Treasury in 2012. Also, the government will divest its remaining shares, around 300 million, by early 2014.
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Toyota Motor Corporation’s (NYSE:TM) $1.1 billion settlement, which is linked to claims that its vehicles accelerated unintentionally, should help the firm put the matter behind it. However, it still faces possibly hundreds of related personal injury lawsuits, according to Reuters.
Tesla Motors (NASDAQ:TSLA), which is valued at $4 billion, is among the leading candidates in Silicon Valley for a 2013 stock collapse if it fails to receive significantly more cash next year. It seems that Tesla’s finances are in even worse condition that those of Groupon and Zynga.
A123 Systems (NASDAQ:AONE) will remain as it is, an American company that will be operated and governed in the same manner as it has been, says Wanxiang Group. Chief Executive David Vieau of A123 says the fears are unfounded since it has been manufacturing batteries in China for the past six years.