General Motors Launches New Engines - Analyst Blog

General Motors Company GM has launched 11 new Ecotec small-displacement engines, which will be used in 5 GM brands and 27 car models by 2017. The company anticipates manufacturing 2.5 million Ecotec engines per annum by 2017.

The engines will be manufactured in three- and four-cylinder variants. They will also support hybrid propulsion systems and alternative fuels.

General Motors will manufacture these engines in five locations – Flint, U.S.; Shenyang, China; Szentgotthárd, Hungary; Toluca, Mexico; and Changwon, South Korea. However, the company will have to invest over $200 million in the Flint plant to support the production of these engines.

Initially, General Motors will use a 1.0L turbocharged three-cylinder engine for the Opel ADAM in Europe, and 1.4L turbocharged and 1.5L naturally aspirated four-cylinder engines for the 2015 Chevrolet Cruze in China.

The new Ecotec engines are more efficient than the previous version and also produce less noise and vibration. They use technologies like central direct fuel injection, continuously variable valve timing, turbocharging and variable intake manifold airflow to enhance efficiency. Moreover, their modular architecture simplifies the manufacturing process and makes them easier to adapt to global requirements.

General Motors is a leading global automotive company. The company has presence in almost 120 countries and has facilities located in 30 countries.

General Motors currently holds a Zacks Rank #5 (Strong Sell). Some better-ranked automobile stocks worth considering are Tata Motors Limited TTM, Daimler AG (DDAIF) and Tesla Motors, Inc. TSLA. TTM and DDAIF sport a Zacks Rank #1 (Strong Buy) while TSLA carries a Zacks Rank #2 (Buy).