General Motors Company (NYSE:GM) has also learned a few things from recession and bankruptcy. Meet Susan Docherty, head of Chevy and Cadillac in Europe. She’s a trooper, having witnessed GM’s bankruptcy, the plunge in U.S. industry sales, and the cash-for-clunkers program mentioned earlier. She’ll be instrumental in taking lessons learned years ago and applying them to very similar situations in Europe.
In some countries Chevy will be offering covered maintenance (oil changes, tire rotations, etc.) for up to three years on vehicles purchased. A less confident consumer worried about decreasing income will have one less thing to worry about.
As mentioned earlier, advertisements are sporting over $9,000 worth of incentives to sell vehicles. GM decided it isn’t going down that road again; it didn’t work in the U.S. and doesn’t make sense now. It will concede market share and avoid incurring massive losses to move vehicles off the lot. This is a great sign for investors, and hopefully that lesson will hold true for GM’s operation in other countries.
Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) are making the right moves to minimize losses in Europe. As cost-cutting measures begin to take effect and a gradual recovery occurs, both companies will be sitting pretty. It will take time and investor patience because for the foreseeable future Europe will put pressure on the stocks. A patient investor can pick up a valuable company poised for future success. I personally believe Ford has reacted quicker and proved itself to handle the original crisis much better than its rival General Motors Company (NYSE:GM). Keep an eye on whether Europe’s recovery resembles the U.S. rather than Japan, or somewhere in between. By the time 2020 rolls around, Ford Motor Company (NYSE:F) might be the star in your portfolio. At least, that’s what I’m banking on.
The article What’s Holding These Automakers’ Stock Prices Down? originally appeared on Fool.com.
Fool contributor Daniel Miller owns shares of Ford. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.
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