Dealers from GM's national dealer council put their money where their mouths are this week, purchasing more than $1 million in GM stock.
GM has been battered on the NYSE in recent months and recently took a sharp blow to its stock prices, trading below $9 per share last week. Yet the council of dealers remain committed to the company's future with both their words and wallets.
"We took a hard look at General Motors and we wanted to show our confidence in General Motors," says Duane Paddock, co-chair of GM's national dealer council and owner of Paddock Chevrolet in Kenmore, N.Y.
The purchase was completed on July 14, buying 107,000 shares for a total of $1,057,000.
Their timing could not have been better. GM stock rose 16.6 percent two days later. Today, shares surged another 11.9 percent closing at $12.85.
The council will be sending a letter to dealers this week explaining the move in greater detail, Paddock said. "We want them to know the confidence their dealer council -- as a group -- has in GM and to let them know that it's a great investment for other dealers."
The council is also considering purchasing airtime to share their message of confidence with consumers. "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," said Paddock.