Over two years in a row the day after a rigid, tight purse of U.S. consumers seem to cover their last sigh of relief.

U.S. Department of Commerce recently released a report showed U.S. retail sales in October rose sharply by 1.2% year on year, this year the biggest increase since March, and higher than market expectations of 0.8%. Among them, the October car sales were up 5% in 13 sub-projects in the consumer ranks the first place. According to this data, adjusted quarterly U.S. auto sales have reached an annual 12.25 million, is from the U.S. government in August 2009 the project has taken the most cash for clunkers strong performance.

Obama re-engineering before the automobile industry group leader Steven Rattner not long ago said that when the U.S. auto market back to the 15 million annual sales level, to General Motors, Ford car as the representative of the profitability of the U.S. auto makers will be a “blowout” growth.

With “Black Friday” (Black Friday Note: refers to the first day after Thanksgiving, often regarded as the beginning of the Christmas shopping season) is coming, this has some “excitement” of consumers turn into a consumption peak , it appears that 15 million car sales a year is already around the corner.

If the U.S. auto industry is about to usher in the spring of economic recovery, has recently been the two hot automobile giant General Motors and Ford, which one is the better investment choice?

Ford VS GM

The business world is always full of competition, with the return to capital markets, General Motors, General Motors and Ford the two auto giants pull back the curtain in a fierce battle.

Although GM performance “brilliant,” the three major automobile manufacturers in the United States only one who did not receive government assistance of Ford Motor, its third-quarter earnings to be outdone. Hot new model cars because Ford third-quarter profit of 1.69 billion, a record 107-year history of the company the highest quarter on record.

So far since January 2009, the stock has risen 660%, some people think, will never accept the government bailout of Ford as an investment more secure.

Horizon Investment Services Authority Chairman Charles calorie Wilson that the competitive pressure the automotive industry is huge and is a cyclical industry. In addition, many car buyers are also subject to government for help GM disappointed.

“Government participation in which always makes me feel uneasy. Because the funds raised by listed more pockets into the government, not for the development of enterprises.” Hennessy Fund, the British fund manager Frank Ingarra says .

At this point, Carlson and Graham represented the British view of many fund managers. Jones Villalta Fund, a fund manager Tom Villalta also said: “General Motors is currently under government control the situation and the case of Citibank, JP Morgan Chase also similar. Can take a look the two company’s share price , we can for these government-controlled companies have a basic expectation. In the past few years, the JP Morgan Chase’s shares are basically marking time, while Citigroup’s stock is shrunk in half. “Villars tower in charge of the Fund since December 2008 and has been held to buy Ford so far.

General Motors in 2009 because of deep financial difficulties and received 49.5 billion U.S. dollars the U.S. government bailout loan. After its IPO, the U.S. government sold 358.5 million shares of General Motors, to recover 11.7 billion of funds, accounting for General Motors, 23.6% of relief funds. General Motors, the U.S. government equity holdings from 61% to 33%. “Although the Government is gradually restart the privatization process, but the impact of these companies will continue for some years.” Villa Alta says.

“We prefer a little more than Ford, from the perspective of capital structure, Ford is the better choice. And Ford is gathering strength. I gave up on his Mercury brand the often-criticized decision of the brand is very excited. because it has found the direction of future development and operation. ”

As of Wednesday’s close, Ford’s total market capitalization of $ 55,390,000,000, $ 50,220,000,000 than GM’s total market value is slightly higher. According to the Financial Times is expected to General Motors sales in 2010 expected income, the current share price of 33 dollars per share, trades at 11.5 times, while Ford’s price-earnings ratio is 9.5 times. Although GM is still the most profitable car manufacturers, sales and sales were also ahead of both Ford, but many U.S. fund managers are more optimistic about Ford vehicles to bring financial services to the high profits.

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