Shakeups From This Growth Hedge Fund: Delta Air Lines, Inc. (DAL), United Continental Holdings Inc (UAL)

For one, Ford expects industry volume of 15 million to 16 million unit sales in the U.S. for 2013, compared to 14.8 million in 2012. The car company is also expecting gains in market share for its U.S. and China operations. Its market share is 15% in the U.S. and only 3% in China. Besides growth in China, Ford plans to focus on the highly populous country of India, by boosting exports of its engine production and manufacturing in India, and then embarking on plans to ship from India to Europe. Ford also pays a near 3% dividend yield that is sometimes overlooked (read about Ford’s great dividend).

GM is another top car maker. The company has some $26 billion in cash, with total debt of only $16 billion. North American market share is just one of GM’s focuses, but the company does plan to boost market share and increase prices in the region over the next few years. This includes upping its profit margins from 8% to 10% for the region over the next three years. The margin expansion is expected to be a result of its investments in Cadillac, which it hopes to bring to the forefront as a premier brand.

With Ford’s plans to look to China and India for growth, GM is following suit. GM has a joint venture with SAIC for opening its second plant in the Guangxi province for manufacturing the only-in-China brand Baojun, which will be able to produce some 400,000 vehicles annually. GM also has a joint venture with SAIC, of which it owns 93%, that will launch several light commercial vehicles in the Indian car market. GM’s India operations will also export vehicles to other markets, including South America and South East Asia (see how the car makers are doing in China so far).

As far as GM and Ford go, both still trade much cheaper than their overseas counterparts:

Price to Earnings

Ford 9 times

GM

9.5 times

Toyota 19 times

Honda 17 times

Don’t be fooled

The article Shakeups From This Growth Hedge Fund originally appeared on Fool.com and is written by Marshall Hargrave.

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