Having had its presence in the automotive industry for decades, (GM) has comprehensively established itself as one of the largest automakers in the world. Over the course of its long history, the company has seen numerous shifts and changes in trends. However, it has managed to adapt itself each time, coming on top of emerging trends and evolving market conditions. More recently, General Motors has redirected its strategic focus towards garnering higher shares in emerging markets in Asia, Europe and South America. Among these, China has appeared to be one of the largest markets for automobile manufacturers.
However, with a significant slowdown in China’s economic growth in recent months, economic gurus predict that automobile manufacturers will find it increasingly difficult to achieve projected sales growth in the current fiscal quarter. General Motors has come a long way considering the fact that it filed for bankruptcy in 2009. It has formed a strategic alliance with the Shanghai Automotive Industry Corporation (SAIC), announcing plans to buy back 1% share in the venture. This will allow General Motors a 50% share for both parties in operations.
General Motors has fared well in the first fiscal quarter of 2012, reporting impressive increases in sales and profits year-on-year. Leading financial indicators of the stock look promising, suggesting a brighter outlook in the future and better returns for investors. This explains why the stock has been able to post an impressive performance recently amid favorable market conditions and strong investor sentiment. To continue reading, click here.