After breaking out above $40 and rising by 3.33% last Friday, General Motors (GM) may move higher today. The firm hired a key, former Tesla (TSLA) executive to lead its global manufacturing unit. This should catalyze GM’s global sales in the coming quarters.
GM will replace its retiring executive VP, Gerald Johnson after he spent 44 years with the company. Tesla’s ex-executive, Jens Peter Clausen, will take his place. Clausen is currently the VP of Engineering at Google’s (GOOGL) Data Center for Advanced Technology Innovation. His experience at the search giant should shift GM’s focus to software and design. Automobiles require better software and technology, so this new leader is a good fit.
Last Friday morning, rumors circulated again for the second time that Fisker (FSR) is talking to a large automaker to form a strategic partnership. Media speculated on Nissan being interested in buying Fisker the week before. However, automotive sales at dealerships are weakening. Consumers have far less disposable income. They cannot afford the higher loans or monthly lease rates. Until interest rates fall, the automotive sector will struggle.
Investors should be wary of holding a position in Ford Motor (F), Toyota (TM), or Honda (HMC). In the luxury vehicle space, however, Ferrari (RACE), BMW, and Mercedes (MBGAF) are resilient. They have customers who have a higher income level.
