Ford Motor Company (F), General Motors Company (GM), American Autos Don’t Get Enough Credit

Page 1 of 2

At least once a week I hear someone hollering that Detroit’s vehicles are junk. It makes me realize how far in the past consumer perceptions of Detroit’s vehicles remain. I don’t think some people realize how far domestic vehicles have come in the past five years. Some only remember when the Big Three made great trucks but lousy, inefficient, poor-quality vehicles — and refuse to give it another thought. Some of the investing community still describes Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) stock in similar distasteful terms.

Times have changed. In looking at the new vehicles rolling out of Detroit, here are a few things for consumers to keep in mind, as well as what they mean for investors. I’ll use Ford as my prime example.

Quality
It took years for the American consumer to give up on domestic vehicles, and it will take years to win them back, but the fact remains that the Big Three have been fighting — and perhaps winning — the quality battle. In your head, rank Toyota Motor Corporation (ADR) (NYSE:TM), Honda Motor Co Ltd (ADR) (NYSE:HMC), General Motors Company (NYSE:GM), and Ford Motor Company (NYSE:F) one through four, with No. 1 representing the highest total number of recalls over the past three years. Whom do you think comes out on top? The results may surprise you.

Toyota Motor Corporation (ADR) (NYSE:TM), previously known for its industry-leading quality, tops all automakers in total recalls. It also has more recalls than the No. 2 and 3 spots combined — or General Motors Company (NYSE:GM) tripled — in that time period.

I’ll take it a step beyond recalls and point out that Ford is winning critics over with its value. Ford Motor Company (NYSE:F) was recently a shining star in the U.S News and World Report “Best Car for the Money” awards for 2013. It dominated the competition by taking home six first-place categories, more than any other brand.

Past and present
When Toyota Motor Corporation (ADR) (NYSE:TM) and Honda Motor Co Ltd (ADR) (NYSE:HMC) first entered the U.S. market, everybody just knew Detroit was invincible. Well, we all know what happens when we get complacent, and sure enough, Detroit fell — hard.

We find ourselves in a similar situation today with perceptions, except the roles are reversed. Recently it was unthinkable for Detroit to produce a quality and fuel-efficient passenger car to compete with the Japanese. People still struggle to grasp the notion that things have changed. After all, we just know the Toyota Camry and Corolla are unbeatable. The Camry has been America’s best-selling car for 11 straight years, after all.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!