GM Increases Production thanks to 'Cash for Clunkers'
General Motors will build 60,000 more cars and trucks thanks to the success of 'Cash for Clunkers', that helped Motors Liquidation Company (OTC:MTLQQ) shares move 5%.
Motors Liquidation Co. (MTLQQ.PK) is what's left of General Motors, now known as "Old GM" and is the last of the tough assets consisting of manufacturing plants, brands and liabilities. Shares of Motors Liquidation are almost at $1, today they gained 4 cents to finish the day at 91 Cents.
This is good news for the 'New GM', the additional 60,000 automobiles will lead to additional shifts and overtime at several factories and the reinstatement of 1,350 workers at two plants.
GM said that sales in the month of July and August are between 60,000 and 70,000 units above what the company had predicted as recently as two months ago. In July, the automaker had approximately 300,000 units for sale compared to a peak level of 1.3 million vehicles available at one point in the past four years.
"We are running much hotter, as is some of our competition as well," said Mark LaNeve, GM's vice president of U.S. sales. "I would say a big chunk of that is obviously attributable to the success of the Cash for Clunkers program."