How the Big Automakers Are Faring in China: General Motors Company (GM), Honda Motor Co Ltd (ADR) (HMC), Toyota Motor Corporation (ADR) (TM)

Getting back to General Motors Company (NYSE:GM), pretty solid with Buick, Cadillac down about 24% overall the first couple of months. There are reasons for that, but GM is clearly going to have to execute better with their goal of making Cadillac a major brand in the country by 2015.

It’s important to note with Asia that not all sales are created equal, in terms of profit. You have to have joint ventures, which takes about half the profit, so clearly you’re not getting the kinds of margins, but again when you’re talking about the world’s biggest auto market this is one that none of these auto makers can afford to miss out on.

That’s why I really like the domestic auto makers’ position right now, especially with what’s happening with the big Japanese auto makers.

We should mention that Volkswagen is right up there with General Motors Company (NYSE:GM), fighting it out for the market share lead. They’re definitely one to watch as well, as they try to take over the “World’s Largest Automaker” crown in a few years.

Overall, I think this bodes well for the big domestic automakers. I’m a shareholder of them. They remain my favorite picks in this sector, just because they’re so cheap right now and I still think they have room to run, even internationally.

The article How the Big Automakers Are Faring in China originally appeared on Fool.com and is written by Brendan Byrnes and Andrew Tonner.

Andrew Tonner owns shares of Ford. Brendan Byrnes 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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