3 Auto Stocks Going Places: Toyota on Verge of Settlement Approval, Tesla Buys a Test Track, and GM CEO Weighs in on Detroit Debacle
Toyota Motor Corp. (NYSE:TM): A U.S. federal judge is expected to approve a $1.6-billion settlement in the class-action lawsuit against Toyota over sudden-acceleration problems, which numerous Toyota owners encountered. The settlement is believed to be the largest of its kind in value and number of customers affected, according to Steve W. Berman, one of the lead attorneys for the plaintiffs, CBS reported.
Tesla Motors (NASDAQ:TSLA): To help push along development of its future vehicles, Tesla has purchased 35 acres of space by its Fremont, California, facility to use as a test track. The land was purchased from Union Pacific, though financial terms were not disclosed.
General Motors Co. (NYSE:GM): CEO Dan Akerson says that Detroit’s filing for bankruptcy was due, at least in part, to the three auto manufacturers that have headquarters there. ”It’s simply a matter of macroeconomics. The (auto) industry generally wasn’t doing well. Many jobs were lost as the result of the restructuring, including our own, and the tax base in large measure evaporated,” Akerson told USA Today. From a financial perspective, the city’s filing has no immediate impact on automakers.
Don’t Miss: GM Facing Huge Payout with This Loss in Court.