Ford Motor Company (F) and General Motors Company (GM) Invest Heavily in Their Futures

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Caveat
As a way of entering the world’s biggest and fastest growing auto market, joint ventures were developed between Detroit’s Big Three automakers and Chinese companies. These joint ventures give Chinese companies full use of our technology and ways of doing business – shortening the learning curve for Chinese automakers.

Furthermore, as international brands continue to make vehicles on global platforms with similar design features for all markets, Chinese automakers will likely become increasingly competitive globally, not just in China, as we head toward 2020. The shortened learning curve for China’s automakers and the influence of politics on business in the region are good reasons why global automakers need to succeed early in the country’s automotive market boom. The next leader in global auto sales will likely be a company that has sustained success in China as well as the U.S. – this will be a company worth a spot in any portfolio.

The article Ford and GM Invest Heavily in Their Futures originally appeared on Fool.com and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.

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