3 Auto Stocks Going Places: GM’s Pension Easing, Toyota’s Puts Big Bucks into Production, and Tesla Eyes China Amid Skepticism
General Motors Co. (NYSE:GM): GM and Ford Motor Co. (NYSE:F) are reportedly making progress on the costs associated with their pension programs, allowing the companies to free up some much needed capital for their core businesses. The two are responsible for two of the largest pension obligations among all U.S. companies, and said last week that they see significant improvement in their plans due to the rising interest rates used to calculate the cost of future payments to retirees, The Detroit News reports.
Toyota Motor Co. (NYSE:TM): Toyota will be sinking $30 million into its Princeton, Indiana-based facility in preparation for the production of the redesigned Highlander, making it the 10th production increase announcement in the last 20 months. The investment will create around 200 new jobs, and bolster the plant’s production capabilities by 15,000 units per year.
Tesla Motors (NASDAQ:TSLA): Though skeptics are warning that Tesla’s foray into the Chinese auto market could end up falling short of expectations, a leak from the company reveals that its plans for the country may have been somewhat understated. However, a serious lack of an EV support network, no government incentives for electric vehicles, and the sheer expanse of the country could dent Tesla’s ability to capitalize in the region, though some see a well-calculated approach as paying off, if Tesla can get its foot in the door early.
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