Is Ford Motor Company (F) Taking a Huge Risk in This Battle for the Automotive Industry?

In fact, Ford’s chief domestic rival, General Motors Company (NYSE:GM), is taking a much different approach in it has decided to stick with steel for the body of its trucks. Instead, General Motors Company (NYSE:GM) is focusing on improving engines and transmissions to reduce fuel consumption. It’s also producing two different trucks, one focused on power and towing performance and a second smaller truck which will offer about 20% better gas mileage. While both versions will use aluminum, neither will do so to the extent of Ford Motor Company (NYSE:F).

The choice between aluminum and steel could make or break these two sets of rivals. Ford Motor Company (NYSE:F)’s decision to cover its next-generation F-150 with aluminum is a big risk, though that does mean its rewards are substantial as well. That could mean big things for investors in Ford’s stock.

The article Is Ford Taking a Huge Risk in This Battle for the Automotive Industry? originally appeared on Fool.com and is written by Matt DiLallo.

Matt DiLallo has the following options: Long Jan 2014 $10 Calls on Ford and Short Jan 2014 $10 Puts on Ford. The Motley Fool recommends Ford and General Motors (NYSE:GM). The Motley Fool owns shares of Ford.

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