Toyota Motor Corporation (ADR) (TM) Unleashes an Aggressive 2014 Corolla

One drawback for the Corolla could be its engine, but it just depends on what you’re looking for. The 2014 base model will come with an efficient 1.8-liter engine that’s aimed at getting about 40 mpg — though it hasn’t been officially tested yet. It will fall short of horsepower output compared with the Ford Focus, which boasts a very popular turbocharged EcoBoost engine.

Investing takeaway
As a Ford investor, I know very well how much these fuel-efficient segments mean to automakers. The biggest growth trend has been called the “Super Segment” by Ford. Those four segments are represented by Ford’s Focus, Fiesta, Fusion, and Escape — no coincidence that those are four of Ford’s most popular vehicles.

These high-volume sedans, the Corolla and Focus, represent a quick way to win market share and brand awareness in the U.S. and global markets. For the first time in more than two decades, all three Detroit automakers gained market share in the U.S. in the first quarter. Toyota Motor Corporation (ADR) (NYSE:TM) is taking notice that Ford and GM are competing in segments where they had once been left for dead. It will take years to battle past stereotypes of poor-quality vehicles, but things are clearly changing, and that is confirmed by Toyota’s radical image change with its 2014 Corolla — it’s feeling the pressure.

Toyota Motor Corporation (ADR) (NYSE:TM) is still the No. 1 global automaker by sales, but Ford and General Motors Company (NYSE:GM) seem very undervalued as they continue to impress consumers and critics in their rebound from the financial collapse and great recession. A savvy investor would be wise to forget the companies that they used to be, and acknowledge drastically improved companies before others do — I believe great profits await early investors who recognize this.

As Detroit automakers continue to win back market share in the U.S. and produce popular models in growing segments, look for revenues, profits, and margins to all increase — a big win for Ford and General Motors Company (NYSE:GM) investors.

The article Toyota Unleashes an Aggressive 2014 Corolla originally appeared on Fool.com and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors and owns shares of Ford.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.