Toyota Motor Corporation (ADR) (TM), General Motors Company (GM): Which Automaker Rules the Globe by 2020?

Bottom line
There’s plenty of time before 2018 for things to go awry with any one of these three automakers — and choosing which one will end up on top is no easy task. I’ll go out on a limb and say that Toyota Motor Corporation (ADR) (NYSE:TM), which has enjoyed its recent reign as No. 1, will be relegated to third place. I expect GM to finish cleaning up operations and improve margins. It’s also redesigning, replacing, or refreshing 90% of its vehicles by 2016. Once GM’s entire vehicle portfolio dust-off is complete, I expect a substantial increase in vehicle sales. Only time will tell if it will be enough to overtake Toyota Motor Corporation (ADR) (NYSE:TM) and hold off Volkswagen AG (ADR) (PINK:VLKAY).

The automotive industry is cyclical, and there’s no doubt it’s beginning to rebound from the lows seen in recent years. Companies are now leaner and more profitable — finally giving us a reason to consider them as potential investments. Investors who are able to choose the right automaker and hold long term will realize large gains for their portfolio. What do you think … which one ends up on top?

The article Which Automaker Rules the Globe by 2020? originally appeared on Fool.com.

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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