3 Auto Stocks Going Places: GM’s Labor Trouble, Tesla Eyes Production Ramp, and Toyota’s Unfortunate IIHS Rating
General Motors Co. (NYSE:GM): Labor unrest in South Korea, now in its seventh day, is beginning to take its toll on GM. Partial walk-outs have resulted in lost production of around 1,000 vehicles while the union and management continue to battle over a solution. The South Korean operations export 80 percent of GM’s output and build about 40 percent of all Chevrolets sold globally.
Tesla Motors (NASDAQ:TSLA): CEO Elon Musk said that Tesla’s current production of the Model S is more than 400 units per week and exuded confidence that it would reach a level of 800 by late 2014. In a near direct response to critics who still see the Model S as a niche vehicle, Musk said, “We going to have every kind of car you could possibly imagine.”
Toyota Motor Co. (NYSE:TM): It looks as if Toyota may head back to the drawing board after the latest crash test ratings for its new RAV4, which earned a disappointing “Poor” rating in tests conducted by the Insurance Institute for Highway Safety. Among other problems in its head-on collision test, the agency noted that the steering column moved seven inches to the right, causing the crash test dummy to practically miss the airbag; the dummy’s left foot was also trapped in deformed sheetmetal and the dummy’s head hit the instrument panel.