Most investors still shy away from buying stock in Detroit automakers Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) because of how horribly they were run in the late ’90s and 2000s. Both are producing higher quality, more popular vehicles and management has pulled its act together. Let’s take a look at both companies, and I’ll explain why I feel both are stocks to buy.
A look at both
Both companies have drastically improved their balance sheets – albeit in different ways – since the recession. If you’re thinking that Ford Motor Company (NYSE:F) still has an enormous amount of debt, you’re misunderstanding it. Investors now want to see potential future growth in the top and bottom lines. Let’s break it down and see what’s happening.
The revenue growth will come down to selling vehicles – simple as that. The good news for both of these companies is that’s exactly what’s happening.
For the first two months of the year the Fusion saw increases of 65% and 28%, versus prior year. It also had an impressive March by selling over 30,000 units for the month and 80,000 for the quarter – for the first time in the Fusion’s history.
Looking beyond the numbers, check out the awards this flashy sedan brought home:
2013 “Green Car of the Year” award during the Los Angeles Auto Show.
2013 Kelley Blue Book “Best Redesigned Vehicle”
Three straight years – U.S. News & World Report “Best Cars for Families”
Three straight years – U.S. News & World Report “Best Car for Your Money”
If you glance at the other vehicles Ford Motor Company (NYSE:F) is selling, you’ll realize the Fusion wasn’t a one-hit wonder. The Escape had an all-time February sales month record and was up almost 30% versus last year. It followed that performance in March with the best sales month ever in the Escape’s 13 years on the market. The top-selling truck for 36 years – the F-Series – anchors up the most profitable U.S. market segment and is up double digits for the quarter versus last year. Meanwhile, globally, the Fiesta and Focus are selling great, with the Focus topping over 1 million units sold last year.