Year to date 2013, shares of the General Motors Company have appreciated by 12.9 percent, closing at 32.55 on June 26. That’s up from a 52-week low of 18.72, but slightly down from a high of 35.49. The new share value gives The General a market capitalization of $44.74 billion.
Shares of crosstown rival (or is it frenemy?) Ford are also higher this year, having increased by 18.07 percent — 5.17 percent higher than those of GM. Ford’s shares have a 52-week low of 8.82, and a high of 16.09. The new share price gives The Blue Oval a market cap of roughly $60 billion. Notably, the ebbs and flows of both automakers’ shares are very similar, as shown in the following graph.
Analysts widely expect GM to grow its profitability over the next several years, something that will likely be achieved by eliminating complexity (with fewer engines and platforms), launching new class-leading vehicles, strengthening vehicle brands, and achieving overall scale efficiencies. We can’t wait for the day when all of those items have been realized.