General Motors Company (GM) or Ford Motor Company (F): Which One to Choose


General Motors Company (NYSE:GM) has been a little unstable off late on the market. The company has a recall issue to deal with currently. According to Dow Jones, the company is recalling over 40,500 of the 2013 -14 Chevrolet Cruze vehicles due to Airbag issue.  On the other hand Ford Motor Company (NYSE:F)’s stock has been on a rise for about a week now.

General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), vehicle recall

Melissa Lee of CNBC reported this and she confirmed that the recall was official as there was a report of sales of the Cruze being put on hold. However this move has not yet impacted the stock market so analysts feel that the stock is stable at $37 and it doesn’t seem to have impacted by the announcement.

While few analysts feel that the stock is stable, few others feel that investing in General Motors Company (NYSE:GM) currently might be risky and they would prefer Ford Motor Company (NYSE:F) as it’s rising steadily. While General Motors Company (NYSE:GM) has gained 9% in the past 1 month, Ford Motor Company (NYSE:F)’s stock has seen around 7% percent growth during the same period. Though the numbers suggest that General Motors Company (NYSE:GM) is ahead currently those who are bearish on the stock have a point. There is a risk involved with the recall of over 40,500 vehicles at a time.

Taconic Capital has over 13 million shares in General Motors Company (NYSE:GM) while Hayman Advisors and Mohnish Pabrai have approximately 7 million shares and 5.9 million shares respectively as of March 31st 2014.

Key investors in Ford Motor Company (NYSE:F) are Driehaus Capital with around 40.6 million shares, Appaloosa Management Lp with about 7.2 million shares and Cqs Cayman Lp with approximately 6.8 million shares.

Disclosure: None