General Motors Company (GM), Ford Motor Company (F): How American Autos Could Suffer

And many in the investment community believe that it ultimately will. Bond king Jeff Gundlach believes that the dollar/yen pair could eventually get to 200.

To be fair, Toyota Motor Corporation (ADR) (NYSE:TM) has shifted much of its production out of Japan in recent years, building several factories in the southern US. Yet, many models, such as the Prius, are still made in Japan, while others use plenty of Japanese-made parts.

Investing in automotive stocks

In the aggregate, there are many reasons to be bullish on autos. In particular, the average American car is about 11 years old — those cars won’t last forever.

But with the yen weakening, perhaps investors would be better served buying shares of Japanese auto companies (like Toyota Motor Corporation (ADR) (NYSE:TM)) rather than American (like Ford Motor Company (NYSE:F) and GM). Especially if the yen continues to weaken further.

The article How American Autos Could Suffer originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Salvatore “Sam” 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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