Ford Motor Company (F), General Motors Company (GM): China’s Importance

As such, from the long-term perspective, General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) are making some pretty smart investments in growing their Chinese footprint. It’s good for the companies because they are showing a commitment to diversification beyond the stagnant markets of US and Europe. This new strategy should lead to some strong yields for investors over the long haul, especially as China is a growing, and untapped, car market.

It’s a new American car race–except this time, the cars are speeding down highways in Beijing and Shanghai, rather than the sunny beaches of California. It’s a big play for these two American car titans, but it’s a good risk to take. The Chinese want cars, and the Americans are all too happy to oblige.

The article The Coming American Car War in China originally appeared on Fool.com.

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