Ford Motor Company (F) & General Motors Company (GM) Still Have Time to Catch Japanese Automakers

Graph by author. Source: Automotive News DataCenter

Not only is pent-up demand still a factor for the foreseeable future, consider that as people have held onto their cars years longer than normal, the mileage has increased significantly. That has created a large gap between a used car with low mileage and a new car with zero. As new vehicle sales outpace used vehicle sales it seems as though people are now opting to buy new more often than not – which will keep U.S. sales strong. This trend of buying new instead of used is especially true as tech features rapidly improve and become a major selling point for consumers. In addition, Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM)’s quality looks to be improving as vehicle recalls are in decline recently.

In addition to all that, another bright spot for investors is that there will be major growth in emerging markets that will bring in incremental profits as U.S. and European markets reach saturation. I believe that these trends will give Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) years to improve customer satisfaction to better compete when pent-up demand is worked through – a big win for those investing in Ford and General Motors Company (NYSE:GM)’s rebound.

The article Ford and GM Still Have Time to Catch Japanese Automakers 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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