If you had $10,000 to invest in either GM or Ford, which would you pick?

[Ford Jellymoulds]

CNBC

 

If you had $10,000 to invest in either GM or Ford, which would you pick?

 

The big day is here for General Motors. The stock is officially hitting Wall Street at a time when rival automaker Ford's shares have seen an increase of 872 percent over the last two years.

 

We want to know which you would choose today if you had $10,000 to invest in either Ford or GM. Share your opinion:

If you had $10,000 to invest in either GM or Ford, which would you pick?

LINK

 

GM18%

 

Ford82%

 

Total Votes: 3316

Edited November 18, 2010 by Ford Jellymoulds

[fordmantpw]

I made my choice...bought another 200 share of Ford last week. Probably more over the next couple weeks when I have some more $$$ available to put into my ROTH IRA...

[Ford Jellymoulds]

GM have still got a massive pension debt problems to sort out, and they are still stuck with the same line-up of dull lack lustre cars that dragged them into bankruptcy in the first place.

 

Fords updated US cars are more in tune with what the car buyer wants, build quality is still going higher & higher every years and up there with the very best.

 

6 months down the line GM will start to struggle again with just sales of the Classic Silverado to prop up the very dull GM range of cars. The new Astra in Europe is the only one shining light, but GM,s European operations are still bleeding losing lots of billions of $$$, Korean made junk Cruze & Spark sales are struggling to make a few hundredin Europe every month between them, the future still looks very bleak indead for GM shareholders sad to say.

[ds91776]

Okay, first of all, most of GM's modern cars are actually quite good. Cruze, Volt, Malibu, Equinox, Traverse, Tahoe, Suburban, Silverado, Regal, LaCrosse, Enclave, Terrain, Acadia, CTS, SRX. Buyers of these cars have NOTHING to explain to anybody. They are all extremely competitive. I realize you are from Europe where GM isn't doing so hot right now....but Europe ( out of the Three Largest Markets...AKA North America, Europe, and China ) is by far the least profitable and important in the long term. GM is doing gangbusters in China and is making a comeback in North America. It really is.

 

Don't get me wrong, I love Ford, but I also root for GM. And rightly so. They've been doing some great stuff the last few years. I already own Ford stock, but from what I understand Wall Street HATES family controlled businesses....so it is unlikely that Ford's stock will ever reach the "value" of GM's stock once it gets going and stabilized. Personally I think investment in both Ford and GM is a good idea.

[fordmantpw]

The problem isn't necessarily GM's currenct cars, as much as it is their management and the ability to alter production to meet demand (among other things). To be a good investment, the company has to be routinely profitable, not just make "quite good" cars. The management has set Ford up well for the future, and I don't think the case is the same for GM.

[grbeck]

The big question mark hovering over GM is corporate culture - namely, whether it has really changed. That is what gives me pause.

[Moosetang]

The current performance of GM stock points out something the Street hasn't really addressed: Ford's stock is massively undervalued. With the company making money reliably and rapidly paying off its debts, it should be in the mid-$20s and knocking on $30 not to long from now. Instead, it's actually down a couple cents right now at around $16.33.

[Moosetang]

The big question mark hovering over GM is corporate culture - namely, whether it has really changed. That is what gives me pause.

It hasn't, but just as it was before the Recession disaster the company overall is buoyed by it's sheer size. It is a big company with a big market presence that builds a lot of cars. It survived decades in that state with poor management, and now that it's rid of many obligations it can do so again. Ed is not Alan, so far we've seen little evidence of him blowing up the managerial mess at GM as was done at Ford.

[jpd80]

The current performance of GM stock points out something the Street hasn't really addressed: Ford's stock is massively undervalued. With the company making money reliably and rapidly paying off its debts, it should be in the mid-$20s and knocking on $30 not to long from now. Instead, it's actually down a couple cents right now at around $16.33.

It's so funny that every quarter, Ford manages to out perform the predictions of analysts,

something Ford has been doing for like two years now.....

 

Maybe the analysts need to go practice on GM for a while......

[battyr]

GM is a gamble. You could make or lose big bucks in the short-term just from the IPO. Long-term, you don't know who the owners and the management will be.

 

Ford is the safe bet for the long-term. You know that the Ford family will control it and that Bill Ford will make sure that it will have the best management for as long as he is alive. You also know that Ford has a plan that is working.

[battyr]

The auto industry goes into crisis every ten years.

 

IMHO, 10 years from now, Ford will be debt free with cash in the bank. GM will be bailed out again, but this time by the Chinese.

[DTPrt]

Why would I want to buy GM Stock when I already gave them money to bail them out? We will more than likely not get our money back say most economists. Now lets see . . . I'm to buy a GM vehicle that I've paid for with the bail out. . . buy stock in the company that I bailed out. . . what is the point? . . . How about this?.. . . . Let them give the american people each a $15K car and we will forgive their bail out.

[Ford Jellymoulds]

Some folk have a very short memory and forget how much a lot of folk lost in General Motors shares when they were up at 90 bucks one moment and totally worthless the next as they went into bankruptcy. GM are not a company l would want to invest in they have to many boring car models that sell in very low numbers that will require lot of investment to keep current in the future, Ford in contrast have global vehicles that cuts a lot of development & investment costs down with fewer models.

 

GM's only winners are the Classic Silverado that makes GM sales numbers look good in the USA & its Wuling Sunshine boxy van that selling 50,000 a month in China(Not a boring car).

 

If GM had to rely on just sales of its dull very boring dull cars to keep itself alive they would have been another British Leyland Years ago.

 

[astanyax]

I definitely have a preference for Ford.

[weiweishen]

GM is doing gangbusters in China .

Chinese car Market will soon become Chinese car company's market. In a country where political is the first priority, no one can guarantee your gangbusters profit can last too long. GM's partner in China is SAIC. SAIC is going to manufacture its own car. So GM's market share is going to be significantly reduced due to it partner's launch of their proud Chinese brand Car. BTW, Chinese Government just ratified a new policy that asked all foreign companies to share their technology with their Chinese partners.

GM put too much bet on China.

[2b2]

really stupid poll - if for no other reason than it's either/or = automatically false

Ford's near a high point = wait for a dip

GM, even if ordinary investors could buy in(?), is complicated by the remaining gov't ownership, and completely unstabilized

I'd vote money market to be ready to buy Ford quickly

or maybe buying up A BLOCK of Detroit realestate

[4d4evr-1]

I voted for Ford before the market opened and I have also voted with my $$$ with stock and two Ford vehicles. I have made about $50,000 over the last year or so on Ford and I think I will make more over the next 3 to 4 years.

[ds91776]

First of all "we" didn't bail GM out...the Chinese did ( because of the deficit this country has had since the 70s the money for extra stuff like the bailouts were essentially from loans from foreign sources....aka China ).

 

According to most analysts the culture of GM has changed over the last several years and the bankruptcy has either kicked out or discredited the people/practices that were the bad parts of the Old GM. The good parts of the old GM

( and there were plenty of good parts ) now truly have a chance to flourish. I'm no Bob Lutz fan, but listen to his comments on Autoline Detroit from the LA Autoshow....this is exactly what I'm talking about.

[7Mary3]

GM's balance sheet looks pretty good, and they are very strong in China. They still have a ways to go though. Europe is a problem. Ford is pretty much done with a successful restructure, their European operations are much better than GM's. Ford is weak in China, and I see that as a major factor going forward. I don't like Ford's debt, but they seem to be getting it under control.

 

That having been said, neither! Wouldn't invest in either one. Maybe in 2 years........

[jmmec]

I wish I would have held onto the Ford stock I bought back in the late 90's.

 

I will say, however, that I would never buy a GM, nor invest in GM, simply because of the government bailouts. I'm glad that Ford didn't take the bailouts, and I just put in an order for a 2011 F150.

 

Regards

[Noah Harbinger]

I wish I would have held onto the Ford stock I bought back in the late 90's.

 

I will say, however, that I would never buy a GM, nor invest in GM, simply because of the government bailouts. I'm glad that Ford didn't take the bailouts, and I just put in an order for a 2011 F150.

 

Regards

 

I try to look at the GM bailout in more pragmatic terms. Without the GM/Chrysler bailouts, the entire auto industry would have been sunk, and we probably would have seen the 2nd Great Depression everyone feared. More assets would have to have been liquidated than the market could absorb, leading to widespread deflation, further decreasing business investment and increasing layoffs in all industries, and leading to the decimation of one of the last major industrial bases in the US.

 

If the tea party had been in power, the recession would have spread from disaster to catastrophe. Thank goodness they're a lunatic fringe even within the GOP.

[jpd80]

GM and Chrysler were saved for the good of the industry, we should keep our focus on Ford's success.

 

Imagine Ford without those debts, how much profit would they have made this year, +$18 billion?

And let's not forget that was achieved in a lack luster year with SAAR below 12 million.

[Captainp4]

I try to look at the GM bailout in more pragmatic terms. Without the GM/Chrysler bailouts, the entire auto industry would have been sunk, and we probably would have seen the 2nd Great Depression everyone feared. More assets would have to have been liquidated than the market could absorb, leading to widespread deflation, further decreasing business investment and increasing layoffs in all industries, and leading to the decimation of one of the last major industrial bases in the US.

 

If the tea party had been in power, the recession would have spread from disaster to catastrophe. Thank goodness they're a lunatic fringe even within the GOP.

 

I like how people who believe in the constitution are a "lunatic fringe" these days. You don't have to call names to disagree either, Mr i'm-smarter-than-everyone liberal

[Moosetang]

I like how Conservatives think they're the only ones who believe in the Constitution, and that they are the only ones who get to decide who is and is not acting like a good American,

[Noah Harbinger]

I like how people who believe in the constitution are a "lunatic fringe" these days. You don't have to call names to disagree either, Mr i'm-smarter-than-everyone liberal

 

Fighting for one amendment and throwing the rest in the trash does not a constitutionalist make.