Move on over Ford, GM is picking up momentum. According to analysts of Morgan Stanley, General Motors is the better long-term pick among domestic automakers. Morgan Stanley has been especially impressed with the new product cadence at GM, something expected to continue with the introduction of the Chevrolet Sonic and Buick Verano.
“We believe GM offers more discrete catalysts, such as being the likely target of UAW negotiations and resolution of U.S. Treasury overhang that could help trigger outperformance through the end of the year,” said Morgan Stanley analyst Adam Jonas.
Morgan Stanley feels that Ford doesn’t have the earning potential through next year that GM does.
“As GM itself has proven, you cannot win in this industry by cutting costs over and over again,” Jonas said. “If auto companies do not make good cars that people want to buy at a decent price, they will go away.”
[Source: Left Lane News]