GM at highest since ’04

A string of solid successes is winning General Motors Corp. respect on Wall Street, propelling the automaker's shares to a three-year high on Friday.

GM's new money-saving labor pact with the United Auto Workers is behind the latest stock price surge as investors absorb implications of the deal reached on Sept. 26 and ratified Wednesday.

Shares shot up nearly 7 percent on Friday to close at $42.64. GM's stock price has surged more than 40 percent since the start of the year.

But beyond the labor deal, GM has been buoyed by its ability to cut costs and improve a lagging product lineup, all while making landmark changes to how factories operate and workers get paid.

While GM still faces major hurdles, investors long skeptical of promises made by the automaker are beginning to see GM as a company that delivers. Now, the No. 1 U.S. carmaker must translate that changing image to the minds and wallets of consumers.

"I'm sure there are plenty of people who looked at this company as 'the troubled GM,' " said Joseph Phillippi of AutoTrends Consulting. "This could help them from a consumer perspective. People are going to take a more rational look at the company as a potential source for vehicle purchase." Detroit News