3 Auto Stocks Going Places: GM Resists Peugeot Investment, Tesla Avoids EV Price War, and Honda Won’t Raise Fit EV Production

General Motors Co. (NYSE:GM): ”Two drowning men don’t make a swimmer”: That was given in response to questions about GM investing in a closer relationship with PSA Peugeot-Citroen from Garel Rhys, emeritus professor of Motor Industry Economics and director for Automotive Industry Research at Cardiff Business School. While Peugeot is actively seeking further investment, GM seems quite content where it’s at with its 7 percent stake in the company.


Tesla Motors (NASDAQ:TSLA): Price reductions on electric vehicles — which have become the industry trend for several months — won’t hurt demand for Tesla vehicles, at least according to industry observers. Given that Tesla is more bent at unseating BMW and Mercedes, the Model S sedan plays in a whole different league than the Nissan Leaf or Chevy Volt, and the performance of the Model S alone deserves the premium that the car demands.


Honda Motor Co. (NYSE:HMC): Despite robust demand for its Honda Fit EV, the company will not be manufacturing more units to meet the long waiting list of buyers, since the Fit EV was intended to simply be a compliance car made to meet California’s strict envrinmental regulations. For some EV owners, Honda’s lease-only Fit EV program brings back unpleasant memories of GM’s EV1 program, which saw the vehicles crushed after it was deemed too cost-ineffective.


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