Why Europe's Crippling Carmakers

Updated

The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Isaac Pino and research analyst Lyons George discuss topics around the investing world.

In today's edition, Isaac and Lyons dwell on the worsening situation in the European car market. For major American automakers, Europe's become a black hole for profits, and 60% of the cars sold on this continent are done so at a loss. Leadership change-ups at GM indicate that the company has no plans to pull out entirely any time soon. In reality, however, is it time for shareholders to advocate pumping the brakes on this market altogether?

GM's stock, currently mired in the low $20s, could have significant upside in coming months as new products hit showrooms and improvements continue around the world. However, investors need to stay attuned to fluctuating demand and the ability of automakers like GM and Ford to respond in unison. For starters, one of our top equity analysts has compiled a premium research report with in-depth analysis on Ford's competitive edge. To find out what could propel Ford down the road, get instant access to this premium report now.

The article Why Europe's Crippling Carmakers originally appeared on Fool.com.

Both Lyons George and Isaac Pino own shares no companies listed above. The Motley Fool owns shares of Ford.Motley Fool newsletter serviceshave recommended buying shares of General Motors and Ford and creating a synthetic long position in Ford. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days. The Motley Fool has adisclosure policy.

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