Ford Motor Company (F), General Motors Company (GM): Two Timely Stocks to Buy Now

Global expansion
Two of the biggest boom and bust scenarios for Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) are found in Europe and China. Europe’s outlook is dismal and both Ford and General Motors Company (NYSE:GM) expect massive losses this year – Ford is expecting to lose as much as $2 billion. However, the situation is similar to what we saw in the U.S. during the financial crisis and both automakers are exporting their hard-earned lessons to Europe to quickly minimize losses. Both companies expect to break even in 2015, which could reverse billions of dollars of losses and instantly boost bottom-line earnings and stock valuations.

China is the X factor in all of this. Last year vehicle sales in China hit 19 million, whereas Europe and the U.S. sold just over 12 million and 14.5 million vehicles, respectively. Analysts expect significant growth in China’s vehicle sales – some estimates call for China to easily top 27 million vehicles sold by 2020. That’s a huge jump when you compare most estimates; expect Europe and the U.S. to reach levels just over 15 million and 17.5 million, respectively, in that same time period.

Bottom line
General Motors Company (NYSE:GM) is already a dominant player in China, yet still plans to spend $11 billion in the region to secure its success going forward. Ford Motor Company (NYSE:F), which was late to the game in China, is spending nearly $5 billion and introducing 15 new models by 2015 – an attempt to double its market share.

Three to five years from now we could be witnessing Ford and GM return to profitability in Europe, boost revenues during China’s surge in vehicle consumption, and drive home bottom-line profits in the U.S. with a strong full-size pickup segment. If that holds true, these will be two very attractive stocks to own.

The article 2 Timely Stocks to Buy Now 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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