Today, industrials editor and analyst Brendan Byrnes discusses the struggles confronting General Motors in Europe. Frustrated with the turnaround of its European unit, GM replaced the head of its European operations last week, but the outlook on the continent still looks bleak. GM has lost more than $15 billion in Europe since 1999, and Opel sales lost 15% during 2012's first five months. Political pressure and labor unions will likely prevent GM from closing plants and reducing capacity until 2016, so GM will likely see negative numbers in Europe for quite some time. But with an incredibly cheap valuation, it looks like the European struggles are priced in. From a long-term standpoint, GM could be a bargain for a patient investor.
Ford, like GM, is struggling in Europe and could lose almost $600 million there in the second quarter. While that's keeping Ford's stock price down, there's still a lot to like about the company -- it's making good vehicles, is consistently profitable, recently reinstated its , and has done a remarkable job paying down its . So does Ford's recent dip below $10 a share create an incredible buying opportunity, or are there other 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 right now, and why. Simply to get instant access to this premium report.
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.