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General Motors Company (GM), recently, announced its partnership with Barclays Premier League giant Manchester United. This five-year contract will lead to the creation of Chevrolet China Cup. Thus the company is replacing Germany’s Audi, which was the automotive sponsor of Manchester United.

From July onwards, matches under the aegis of Chevrolet China Cup will be played in different cities of China including Shanghai. With a fan following close to 659 million, Manchester United is one of the most popular soccer clubs in the world. Fans are more concentrated in Asia including China. General Motors also has significant sales exposure in this region.

With the objective of enhancing the fans’ experience, global football matches have been sponsored by Chevrolet for the first time in its 101-year-old history. Under the dealership, Chevrolet's logo will appear on the benches and stadium of Manchester United and not on the team’s jersey. Some of the players will also attend events and be the spokesmen for the Chevrolet brand.

Chevrolet has also signed a three-year contract with One World Futbol Project. Under the collaboration, it will be offering 1.5 million soccer balls to youth living in war-stricken zones, refugee camps, disaster areas and other disadvantaged communities. One World Futbol has enriched 525,000 lives in 137 countries. Organizations including schools, orphanages and nonprofit institutions where sport is used to resolve conflicts, teach tolerance and build communities would also benefit from the initiative.

General Motors, along with its strategic partners, produces, sells and services cars, trucks and parts under four core brands – Chevrolet, Buick, GMC and Cadillac. It also assembles passenger cars, crossover vehicles, light trucks, sport utility vehicles, vans and other vehicles. The company’s major competitors are Ford Motor Co. (F) and Toyota Motor Corporation (TM).

General Motors currently retains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating. The company has significant growth opportunities in the emerging markets. Sales will also be boosted by the rising demand in the industry and diversified lineups.

However, high debt level and the Eurozone crisis have weighed on General Motors. Taking these factors into account, we currently have a long-term (more than 6 months) Neutral recommendation on the stock.

 
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