Ford Motor Company (F), General Motors Company (GM) – Detroit Update: Where Are the Big Three Today?

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For those wondering, yes this is the same program that made loans to NissanTesla Motors Inc (NASDAQ:TSLA), Solyndra, and Fisker. Unlike shareholders of the pre-bankruptcy General Motors Company (NYSE:GM) and Chrysler, Ford Motor Company (NYSE:F) shareholders have enjoyed a strong rally in the price of their shares as the stock that traded under $3 in 2009 has risen to more than $15 today. To top it all off, Ford even rewards its shareholders with a 2% dividend, showing that the healthiest companies are the one’s that take action before the economic downturn.

Return of the Big Three

Even though GM, Chrysler, and Ford Motor Company (NYSE:F) have come far from the bottom, the auto industry has changed from the one that built Detroit. Foreign competitors like Toyota Motor Corporation (ADR) (NYSE:TM), Honda, Hyundai, and Nissan have taken large swaths of market share from the Big Three and in the process, shaped the auto industry into a place with more medium sized competitors rather than three automotive giants. Yet, the future still brings opportunity to General Motors Company (NYSE:GM), Chrysler, and Ford Motor Company (NYSE:F).

A rebound in housing activity has more people purchasing cars and the demand for construction brings more sales of pickup trucks. Additionally, emerging markets have billions of people looking to climb into the middle class and the car is often a symbol of this accomplishment. The road ahead may not be entirely smooth, but look for automotive companies to benefit from a combination of positive economic trends and an increase in worldwide demand over the next several years.

The article Detroit Update: Where Are the Big Three Today? originally appeared on Fool.com and is written by Alexander MacLennan.

Alexander MacLennan owns shares of Tesla Motors. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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