In a symbolic gesture of support for a struggling General Motors, 20 members that make up GM’s national dealer council bought more than $1 million in the automaker’s stock this week.
GM has been ravaged by a sharp decline in truck and SUV demand, with stock prices dropping near historic lows over the past few weeks. However, GM’s dealer council feels that both GM and its stock are undervalued and that it’s the perfect time to buy.
“We took a hard look at General Motors and we wanted to show our confidence in General Motors,” Duane Paddock, co-chair of GM’s national dealer council told Automotive News. “We firmly believe in GM and that we have the best products to sell, our fuel economy is the best story in the industry and the best way to do it was to buy an investment stock.”
In all, the dealer council purchased about 107,000 shares — valued at $1,057,000 – and the move looks as though it’s already paying off. GM’s stock climbed 16.6 percent on Wednesday, and is up at about 15 percent today.
