Crisis Avoided: General Motors Company (GM) Delivers

Following Ford’s lead, GM also posted a much smaller loss in its Europe operations; it fell from $394 million a year ago to $110 million. Both automakers plan to break even in Europe at some point in 2015 by quickly beefing up bottom-line profits over the next couple of years.

Bottom line
General Motors Company (NYSE:GM) still has a long way to go in matching Ford’s lean operations, but it is a much improved company, and therefore a much improved investment – regardless of how you feel about the company. As an emotionless investor, I see opportunity in owning GM stock. If it continues to improve both its operational efficiency and its margins, then the company has a lot of global sales and revenues to work with. It’s also important for investors to see that GM can handle its launches flawlessly, as it will be refreshing, replacing, or redesigning 90% of its vehicles by 2016 – its largest revamp in history.

One thing is for sure, both Ford and GM are delivering with their new vehicles and it’s showing in their respective earnings reports and stock price increases. Is it possible that they will relapse into old ways and burn investors? Only time will tell, for now GM and Ford appear to be solid investments even after this year’s price run-up.

The article Crisis Avoided: General Motors Delivers 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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