American car manufacturer General Motors (NYSE:GM) is rearranging the units of its North American commercial vehicle fleet businesses under a new name, called GM Envolve. The step is aimed to help the company combat competition from the likes of Ford Motors’ (NYSE:F) Ford Pro Unit.
So far, GM has had different agents from different units calling the same customer to push its after-sales services to increase its revenues. These departments included GM’s traditional vehicle sales, BrightDrop delivery van unit, new energy services operation, and the OnStar telematics unit.
Post the reorganization, customers will have a single point of contact to negotiate both electric and traditional vehicle purchases, plus register for after-sales services and software products. GM realizes that the sales from these segments are important in boosting the firm’s overall revenues. The step does not mean eliminating the workforce. Instead, the company is trying to streamline operations and make the process less cumbersome for customers.
The competition in the commercial vehicle fleet is gaining traction with major players trying to grab a larger share of the market. Commercial vehicles are used for transporting goods and passengers and the market is growing exponentially with the increase in trade volumes. GM is one of the top five players in the U.S. commercial fleet market and it needs to keep up with the technological advancement, both in terms of vehicle manufacturing and strategies to bolster its overall presence.
Is GM Stock a Buy Right Now?
General Motors is undertaking fruitful measures to improve performance and its financial health. Wall Street analysts remain cautiously optimistic about GM with a Moderate Buy consensus rating. This is based on seven Buys versus four Hold ratings on TipRanks. Also, the average General Motors stock prediction of $50.82 implies an impressive 53.6% upside potential in the next 12 months. Meanwhile, year to date, GM stock has lost nearly 2%.
