According to a Reuters report, the General Motors Company (NYSE: GM), an American multinational automotive manufacturing company, has plans to introduce a new and fully-owned premium brand in China. It is likely to sell under the brand name “Halo cars.”
The President of GM China, Julian Blissett, originated the name Halo cars, which refers to “premium, often high-performance cars that have an edgy design.”
Per a statement released by GM, this new “premium import business” will be built from the scratch and be operated with “a high level of autonomy”. “We are inviting talent from across the industry to join us and jointly create our brand-new business in China,” management added.
Information related to vehicle models of the new brand, along with marketing and distribution of the same is under wraps.
Blissett went on to add that upscale GM vehicles which are currently not available in China will be sold by existing brands. Wuling, Baojun, Chevrolet, Buick, and Cadillac typically operate through local partnerships, the newly created division will belong exclusively to GM.
Analyst Recommendations
Recently, Jefferies Group analyst Philippe Houchois maintained a Hold rating and a price target of $53 (31.84% upside potential) on the stock.
The rest of the Street is cautiously optimistic about the stock, which has a Moderate Buy consensus rating based on 10 Buys and five Holds. The average General Motors price target of $74.27 implies 84.75% upside potential from current levels. Shares have lost 26.44% over the past year.
Hedge Fund
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in General Motors is currently positive, as the cumulative change in holdings across all 21 hedge funds that were active in the last quarter was an increase of 785,100 shares.
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