Why Ford Motor Company (F) Is Beating General Motors Company (GM)

General Motors Company (NYSE:GM), who is years behind in consolidating its platforms, had 30 platforms in 2010 and plans to narrow that to 17 by 2018. This is definitely part of the reason that Ford’s operating margins in North America were 11% in the first quarter, whereas GM only managed 6.2%. It’s also part of the reason General Motors Company (NYSE:GM)’s net income in North America last quarter was $1.18 billion, trailing Ford’s $1.6 billion.

Bottom line
Ford is years ahead in streamlining operations and consolidating global platforms. General Motors Company (NYSE:GM) is taking notes and will fix its weakness, but I believe that by the time GM does so, Ford will have increased its sales and market share through its new and popular vehicles, and could leap over General Motors Company (NYSE:GM) for the best-selling automaker in the U.S.

Only time will tell which automaker brings the greatest returns for investors, but one thing is for sure: Both are correcting mistakes and weaknesses that have lingered for the last decade. I think both are great investments with their respective company improvements, and the momentum in the automotive industry looks to remain strong in the years ahead.

The article Why Ford Is Beating General Motors originally appeared on Fool.com and is written by Daniel Miller.

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

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