Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Ford Motor Company (F) and Toyota Motor Corporation (TM) Poised for Success

GM is taking a slightly different approach, unveiling its diesel version of the Cruze this week at the Chicago Auto Show. In my opinion, it’s not going to make much noise. It is reported to get 42 mpg highway and 30 mpg in the city. Those numbers aren’t much better than the gasoline versions and it’s going to cost the consumer about $4,000 extra. GM also differs from Ford’s V-6 turbo-charged EcoBoost engine, as it opted to leave the engines with eight cylinders, which deactivates cylinders when not needed. GM’s reasoning is that eight cylinders burn less fuel while towing than a turbocharged V-6, which only makes sense if truck owners tow a majority of time spent driving. Of the three automakers in this article, GM looks to be behind in the fuel-efficiency game.

Bottom line
We’re in a situation today, where we must think both short and long term. Automakers must divide precious dollars for development into ICE innovations, alternate-power vehicles, or both. We’re likely to see a change in the market demands in the next six to 10 years, and I believe Ford and Toyota are both positioned for success. Consumers are aiming to purchase vehicles for fuel efficiency, rather than to reduce their carbon footprint. The truth is that ICE will be the reason automakers meet the CAFE standards, or fail. We might reach a day where innovation will allow combustion engines, in vehicles like the Fusion and Corolla, to reach 50 mpg. Those vehicles will determine future market share gains.

At this point in time it’s just difficult to predict which technology will be the winner to lead alternate energy to replace ICE. Toyota has always been ahead of the game for fuel efficiency, and rightfully earned its position as No. 1 automaker. Keep an eye on Toyota and Ford, as they seem best prepared for short-term and long-term trends. Finding companies like those two, with forward-looking strategies, is how to make your portfolio a long-term winner.

The article Ford and Toyota Poised for Success originally appeared on Fool.com and is written by Daniel Miller.

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

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.