GM Stock Value Sinks 7 Percent During Week Of August 12 – August 16, 20198
The value of GM stock decreased during the August 12th, 2019 – August 16th, 2019 timeframe. Shares closed the week at $37.00 per share, which represents a decrease of $2.61 per share, or nearly 7 percent, compared to last week’s closing value of $39.61.
Movements in GM stock value for the week were as follows:
- Monday, August 12th: GM stock opened the day (and the week) at $39.23 and closed at $38.86
- Tuesday, August 13th: opened at $38.83 and closed at $37.19
- Wednesday, August 14th: opened at $38.25 and closed at $37.19
- Thursday, August 15th: GM stock opened at $37.17 and closed at $36.47
- Friday, August 16th: General Motors stock opened at $36.57 and climbed to $37.00 at market close
This decrease marks the third consecutive week of decline for GM stock, and follows a jump in value following GM’s Q2 2019 earnings, wherein the automaker outperformed estimates. The decrease this week is believed to be related to warning signs of an economic slowdown as signaled by economic indicators and analysts.
By comparison, shares of GM’s cross-town rival, the Ford Motor Company, fell 6 percent this week.
Over the last few years, GM has taken many steps to increase the value of its stock, including exiting markets where it can’t find ways to turn a profit (such as Europe, South Africa, and India), closing plants in various parts of the world, divesting loss-making divisions (such as Opel-Vauxhall), making adjustments to its business model in order to prioritize profitability over chasing market share goals, focusing on its Cadillac luxury brand to increase its share of high-profit automobiles, investing heavily into new-age mobility ventures such as electric vehicles and autonomous driving tech, while discontinuing some sedans (Cruze, Impala, LaCrosse, XTS) to focus on more profitable crossovers, SUVs, and pickup trucks.
Despite these actions, the value of GM stock has traditionally struggled to surpass the $40 mark, spending most of its time stuck in the $33-$38 per share range. The is problematic, since the value of the “new GM’s” Initial Public Offering, or IPO, was $33 per share in November 2010, frustrating many investors. The circumstance was changing until economic warning bells began to ring this week.
We remain interested in seeing how GM stock performs during the final two quarters of 2019, especially as the Detroit-based automaker launches its GEM-based vehicles for developing markets, completes the roll-out of its full-size pickup trucks, and begins to launch its all-new full-size SUVs and various new Cadillac models. All of these products are expected to contribute significantly to its bottom line.
In addition, the automaker was planning to roll out an autonomous ride-sharing service from its Cruise division by the end of 2019, but has announced that it will push back that timeline. GM sees the robo-taxi service as a “trillion-dollar opportunity.”
In July 2019, GM unveiled the new Corvette, which is switching to a mid-engine layout for the first time in its history. The mid-engine Corvette, also known as Corvette C8 or the 2020 Corvette, will launch around December 2019. The vehicle, which is close to being sold out for its first year of production, is also expected to contribute to GM’s bottom line, since the Corvette carries healthy profit margins.
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That noisy thing going out isn’t just your GM fuel pump and GM transmission. Good luck selling those horrendous, overpriced pickup em up trucks when the economy tanks. Bucking the trend again is Subaru, stock prices up. They make those things called cars. Engineers call the shots there, not greedy execs.
so why is the ceo tomomi nakamura doesn’t have an engineering background but is a trained lawyer? or maybe he doesn’t make any decisions …. he is just there to sign the checks.
In a combined million+ miles (almost every GM vehicle we’ve owned), we’ve had 1 fuel pump go bad twice. It was a ’96 C2500. Great truck, was beat to death and constantly ran on low oil due to consumption, but still started right up until we traded it at 142k. So I cant say anything about the fuel pumps.
However, the trans in our ’08 Acadia went twice (first around 78k, then again around 82k (not a problem after that. We traded it at 132k). My aunt had a few problems with the trans in her XT5 but all were resolved and have been fine since 4500 (shes at 22k now). The trans in our XT5 is a bit jerky at times, as is the 6L45 in my 19 LD (it only has 4600 miles on it though, and I hear they act that way until around 6k. The one in our Tahoe fixed itself around then). Transmissions seem to be GM’s weak spot. Forever and always.
Really Subaru? So many car companies to choose from and you’re placing your bets on Subaru?
Subaru is a small company. It barely exists outside North America and Japan, and it’s sales are falling fast in Japan.
Yes, Subaru still build cars, but put them all together and they are outsold by the Malibu. With an average transaction price below that of the Malibu. Also Subaru’s combined car sales are down 22% this year.
When the U.S. economy tanks, a large number of small businesses start up, GM will still be selling trucks & Vans.
Subaru’s crossover buyers will probably move on to something more fuel efficient.
Actually Subaru sales have been up year after year, including up 5% since last year.
You’re right about transaction price, Subaru takes less profit. No 10% off games on a cheap product with a 30% profit margin. To see higher profit as a positive, you must either be a billionaire investor, or you enjoy getting ripped off as a buyer and being on a first name basis with your mechanic. Look at resale values and legitmate relibility studies. Then see what’s in your driveway and ponder if you’re using your head for thinking.
Profit is also the reason they say cars don’t sell, while others are still doing it. The true reason is the filthy rich can maximize their filthy richness better with trucks, which are priced by the pound, like Scott’s wife. It’s ALL about money, not quality for GM.
Not placing any bets, but in 2009, it was Subaru that was thriving while GM ran crying to mommy for money. Watch, Boeing will be next. Too big to fail yada yada, nobody questioning the sheer stupidity, and greed that it took to get there. American companies need to change to survive, need to be smarter, leaner and meaner. Business execs and bean counters play a necessary role, but there is really no reason to pay them more than the cleaning crew or to let them make any truly important product decisions. Let the engineers, designers have more say.
“Let the engineers, designers have more say.”
That’s rich coming from you. You protested endlessly on GMA about the C8 being inferior to the C7 because of the move to rear-mid.
You were quiet long enough after the launch that I thought you had a collective breakdown because nobody else was agreeing with you. Why the sudden change of heart when it comes to design and engineering taking place over the bean counter?
Why is it okay when Subaru puts an emphasis on design and engineering when they make a car, but not okay when GM does the same when they make a car? You’re not being selectively hypocritical, are you?
1st The year isn’t 2009, Fuji Heavy Industries. Sold off it’s non-auto related businesses, and now calls the company Subaru. Plus they no longer have a contract to build Toyota Camrys in Lafayette Indiana. GM is no longer the same company either. They have sold off or shut down money losing operations around the world.
2nd GM builds very competitive vehicles and sells them at a very competitive price. Subaru’s mismanagement of company funds and assets is no concern of mine.
3rd Rapid growth has come at a price at Subaru. Finishing close to the bottom in the latest reliability & dependability surveys.
4th Car sales are falling. If the trend continues, in a few years there will be a ton of cars sitting on used car lots that no one wants to buy. Very few of those vehicles Chevy Cruzes and Impalas.
No, the C8 os NOT already sold out. That was fake news, and even GM has said so. Do you guys do any fact checking before you publish? Why should I believe anything in this story?