China vs. USA: Auto Showdown

Updated

In today's edition, industrials editor and analyst Brendan Byrnes discusses the brewing dispute between the U.S. and China. The Obama administration has challenged China's import tariffs on auto manufacturers GM and Chrysler, but don't expect it to cause investing problems. The challenge is a mostly political move, since GM manufacturers a majority of what it sells in China in the Middle Kingdom itself, which won't be subject to the duties. From an investing standpoint, Brendan is watching the overall economy, whether China will incentivize auto ownership, and how much the government will regulate new car sales.

Ford is agressively expanding into China, having invested nearly $5 billion there so far. Even though the company has lined up China as a future growth market and is continuing to perform very well domestically, Ford's stock has slid below $10 a share. Does this create an incredible buying opportunity, or are there hidden risks with the stock that investors need to know about? To answer that, one of our top equity analysts has compiled a premium research report with in-depth analysis on whether Ford is a buy right now, and why. Simply click here to get instant access to this premium report.

At the time thisarticle was published Brendan Byrnes owns shares of Ford and General Motors. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford and General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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