The following video is part of our "Motley Fool Conversations" series, in which industrials editor and analyst Isaac Pino and research analyst Lyons George discuss topics across the investing world.
The major American car companies have gone through a bit of a renaissance over the past few years, recovering from a near-death scenario in 2009. The reason the car companies lost their way, in the eyes of industry titan Bob Lutz, was a focus on metrics and cost control as opposed to building cutting-edge cars. The entire industry also suffered from overcapacity when demand plummeted during the recession. Guess what? This sounds a lot like what's going on in Europe, and to succeed in this market the companies are going to have to adapt in much the same manner. Don't rule out mergers, alliances, new leadership, or other drastic measures in the near future.
Investors interested in this industry should look at companies with great leadership. The German car companies have solid executives, and Ford's Allan Mulally has deftly steered his company in the right direction. Ford recently reinstated its dividend, but there are plenty of companies out their rewarding shareholders. To find additional dividend-paying companies, download our special free report: "Secure Your Future With 11 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.
