Global Automakers Finally See the Big Picture

Two decades ago, major automakers such as Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) clearly couldn't see the forest for the trees. Their vision was so nearsighted that all the automakers wanted to do was churn out as many SUVs and trucks as possible while fuel-efficient vehicles, which would soon become in high-demand, were left for dead. We know how poorly that ended during the great recession, when expensive, gas-guzzling SUV demand plummeted, and it has caused many investors to avoid owning shares of major automakers since.

Fast-forward to today, and the long-term future is clear as day for automakers: electric vehicles. And while the strategies are long term, recent moves from Volkswagen Group (NASDAQOTH: VLKAY), Ford and GM, at least encourage investors they're on the right path.

Let's not shy away from the fact that automakers are in the business to make money, even if it will take time for EVs to bear significant fruit on the bottom line. But judging by automakers' forecast, the sales and production ramp-up could happen sooner than many expect. Ford expects China's EV market to grow to 6 million units per year by 2025, with four million of those units being all-electric. According to the China Association of Automobile Manufacturers, deliveries of such vehicles jumped 53% to more than 500,000 units last year alone.

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Source: Fool.com