General Motors vs. Volkswagen: Which Automaker is a Better Buy?
Even if the global scarcity of semiconductor chips is having a negative impact on the production of automobile manufacturers, many companies in the industry are still striving to develop efficient and advanced products in order to meet the increasing demand. Examples are the well-known automobile manufacturers Volkswagen (DE 🙂 (VWAGY) and General Motors (GM). Both are well positioned to capitalize on the industry’s long-term growth prospects. But let’s find out which of these stocks is better to buy now. Read on. Volkswagen AG (OTC 🙂 and General Motors Company (NYSE 🙂 are two established players in the automotive industry. VWAGY is a Germany-based automotive company that offers passenger cars, commercial vehicles, energy technology and financial services. GM in Detroit, Michigan, designs, manufactures, and sells automobiles, trucks, crossovers, and related auto parts around the world. It also provides vehicle protection, maintenance, satellite radio, and car finance services.
While automobile manufacturing still suffers from the global semiconductor chip scarcity, many automakers are struggling to meet demand for efficient and advanced products amid the economic recovery and rising discretionary spending. In addition, government and private initiatives to combat the global chip shortage bode well for the automotive industry. In fact, the U.S. auto and auto market is expected to grow 12.3% to $ 82.60 billion in 2021. As a result, both VWAGY and GM should see increasing demand for their products.
But while GM stock was down 8.2% last month, VWAGY’s stock was up 4.2%. VWAGY is a clear winner with a 58% gain over GM’s negative returns for the last six months’ performance. But which of these stocks is the better choice now? Let’s find out.
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