General Motors Company (GM), Toyota Motor Corporation (ADR) (TM): Auto Stocks on Track for Long-term Growth

3. Ford

Ford Motor Company (NYSE:F) sales are up by 15.5% since the beginning of this year. Though some categories are being affected by tight inventory, total sales of cars are still predicted to rise by12.8%, and trucks by 16.2%. The Fusion is selling well, but its tight inventory (a little over a month) is having an impact. Focus follows close behind with 44 days, the Explorer 37 days. Ford is set to stay constrained on Fusion, until Flat Rock plant starts running at the end of 2013.

Small car triumph

Now that people have less money due to the recession, small cars efficient on fuel consumption are in demand. Ford Motor Company (NYSE:F) says that its sales of small cars rose by almost 30% last year. The C-Max hybrid’s sales have been extraordinarily good. The trucks in the F-series were in fact the best-selling vehicle of the light vehicles category in the US. A staggering 650,000 F-trucks were sold in 2012, and the stock is cheap at 9 times forward multiple, which is why it’s recommended as buy by most analysts.

In conclusion

Auto companies in Detroit and Japan have been boosted by a higher SAAR in the US. General Motors Company (NYSE:GM) and Ford are good buys because they are cheap. Operation overhaul in Europe will hopefully show positive sales numbers before long. Finally, Toyota Motor Corporation (ADR) (NYSE:TM) is looking good thanks to Lexus, which is being revived once again.

The article Auto Stocks on Track for Long-term Growth originally appeared on Fool.com and is written by Nauman Aly.

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