What This Huge Recall Means for Auto Investors


Toyota's (NYS: TM) recall last week was the biggest in the automaker's history, but it wasn't the first -- and it wasn't the most serious, either. Although U.S. safety regulators have reported 161 fires and 9 injuries resulting from problems with power-window switches, there have been no crashes or deaths, and this recall won't get nearly the press that Toyota's sticky gas pedal recall got in 2009-2010. Of course, it does further hurt the car company's image, which had long been considered the maker of the most reliable, well-produced vehicles.

In the video below, Fool.com industrials analyst Brendan Byrnes expands on the topic of vehicle recalls, first looking at incidents that both Ford (NYS: F) and General Motors (NYS: GM) have dealt with in the past, and then analyzing Toyota's handling of the current situation.

Brendan still considers domestic automobiles a better buy, though, with Ford in particular performing incredibly well as a company over the past few years. But despite all signs pointing to success for Ford, the company's stock still seems stuck in neutral. Does this create an incredible buying opportunity, or are there hidden risks that investors need to know about? To answer these questions, Brendan has authored a premium research report with in-depth analysis on whether Ford is a buy or a sell, and why. In addition to the report, you'll also receive a full year of updates and guidance as key news develops. Simply click here now to learn more and get started.

The article What This Huge Recall Means for Auto Investors originally appeared on Fool.com.

Andrew Tonner owns shares of Ford. 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 may not 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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