Ford ISSUES Recall and 4 Auto Stocks Driving FORWARD
Ford Motor Co. (NYSE:F): Ford Motor Co. issued a third recall of their newly launched 2013 Escape Sport Utility Vehicle. They said that an improperly installed part could cause a fire in the engine compartment. Ford spokeswoman, Marcey Zwiebel, said, “In some of these SUVs, a component called a cup plug was not installed properly.” The recall affects about 7,600 Escapes that are equipped with a 1.6-liter engine and built between Oct. 5, 2011, and Aug. 31, 2012. Their shares traded up $0.16 (1.70%), to close at $9.57.
General Motors Company (NYSE:GM): Citing a German magazine called Spiegel, Reuters reported that General Motors Company (NYSE:GM), is said to be watering down tentative plans to share mid-sized car technology with PSA Peugeot Citroen (PEUGY). It had been expected that the Opel Insignia and Peugeot 508 would draw on GM platforms, but managers at GM China and Buick are vetoing the plan because they fear the French models would compete too much with their own vehicles. Their shares traded up $0.45 (2.11%), to close at $21.76.
Toyota Motor Corporation (NYSE:TM): According to the Wall Street Journal, Volkswagen’s (VLKAY) Golf hatchback has been their go-to car for nearly four decades. Now it is getting a radical makeover that is the key to VW’s ambition to replace Toyota (NYSE:TM) as the world’s biggest car maker. Their shares traded down $0.29 (0.37%), to close at $78.44.
Honda Motor Co., Ltd. (NYSE:HMC): Honda Motor Co.’s 2013 revamped version of the Accord, the longest selling U.S. midsize car, debuts this month. The company is trying to speed their sales recovery and recapture a reputation for benchmark vehicles. “We think we’ve hit this one out of the park,” said John Mendel, executive vice president of U.S. sales, in an interview, last month, in Santa Barbara, California. “This is the decathlon champ of this category.” Their shares traded down $0.16 (0.51%), to close at $31.46.
Tesla Motors, Inc. (NASDAQ:TSLA): Since 90% of Tesla Motors, Inc.’s(TSLA) revenues are expected to come from the Model S this year as well as next , it is not wrong to say that a successful Model S will lead to progress for them. Therefore, discussing the future of the Model S is like discussing the future of TSLA. When the market first heard exuberant Chief Executive officer, Elon Musk, declaring that 50% of the cars produced in 2032 will be electric vehicles (NYSE:EV), nobody believed him. Most thought it was nothing more than pandering to the shareholders. Many considered a single digit growth rate for the EV market. Their shares traded down $0.2 (0.71%), to close at $27.94.
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