We know fewer younger people are buying cars nowadays. Even fewer younger people are getting their licenses nowadays.
General Motors Company (NYSE:GM), of course, is not traditionally viewed as necessarily the most hip of all automakers. Maybe they can come back in and be more attractive to these younger buyers that are going to be their core customers as they work their way up into their 30s, 40s, and 50s. I definitely think it’s a good idea from that.
Obviously, just getting more and more technology into cars makes them more attractive overall, but I like General Motors Company (NYSE:GM)’s strategy here a little bit better than Ford.
When we’re talking about these stocks overall, a little run-up over the past six months — actually over the past month they’ve come down just a slight bit — I do still think these are long-term, solid investments for your portfolio.
They remain trading, both of them, under 10 times earnings, both the big domestic automakers. That’s the main reason I like them better than the Japanese players — Honda Motor Co Ltd (ADR) (NYSE:HMC), Toyota Motor Corporation (ADR) (NYSE:TM), Nissan (OTCBB:NSANY) — just because they’re a little bit cheaper.
Overall, I like what General Motors Company (NYSE:GM)’s doing here and, again, I think for a long-term investor it’s definitely an attractive stock.
The article General Motors: The New Hip Automaker? originally appeared on Fool.com and is written by Brendan Byrnes.
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