{"id":40720,"date":"2013-08-06T13:51:40","date_gmt":"2013-08-06T17:51:40","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=40720"},"modified":"2013-08-06T13:51:40","modified_gmt":"2013-08-06T17:51:40","slug":"a-tale-of-two-markets","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/08\/06\/a-tale-of-two-markets\/","title":{"rendered":"A Tale of Two Markets"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> <\/p>\n

Lately, China has been on something of a stealth mission in Detroit. And the timing is no coincidence. You see, there\u2019s an ancient Chinese proverb that says, \u201cA crisis is an opportunity for riding the dangerous wind.\u201d And Chinese investors are taking this idea to heart.<\/p>\n

Just look at Shanghai Auto (SAIC U.S.A.). Though it employs only 20 Detroit engineers, SAIC caught the collective car industry off-guard when it opened offices in Birmingham, a Detroit suburb.<\/p>\n

For SAIC, the biggest selling point is a large, experienced pool of workers who were laid off during the past few years. The company\u2019s goal is to sell Chinese-made cars on a mass scale in the United States.<\/p>\n

SAIC isn\u2019t alone on its mission, either\u2026<\/p>\n

Chang\u2019an U.S. Research and Development Center Inc. set up a research and development shop in Michigan in 2011.<\/p>\n

Wanxiang Group Corp. bought battery maker A123 Systems Inc.<\/p>\n

Another 50,000 Chinese professionals work at GM<\/b> (GM<\/a>) and Ford<\/b> (F<\/a>), and live in the metropolitan area. The Ford Chinese Association, with its 650 white-collar workers, has become one of Ford\u2019s largest employee groups.<\/p>\n

And the Detroit Chinese Business Association\u2019s flourishing membership includes 100 local, Chinese-owned businesses \u2013 mostly auto-related.<\/p>\n

Who can blame the Chinese for moving in at this point? There are certainly some \u201cdangerous winds\u201d in Detroit these days.<\/p>\n

I prefer, however, to put my faith (and investment dollars) into a couple of tried-and-true American staples.<\/p>\n

The Chinese may be making moves in Detroit. But that doesn\u2019t mean that American automakers are stuck in idle.<\/p>\n

On the contrary\u2026 GM and Ford posted their highest sales levels since June 2008 and June 2006, respectively. And best of all, they plan to do some invading of their own\u2026 in China.<\/p>\n

Buy Red, White and Blue<\/b><\/p>\n

That\u2019s right. Just as the Chinese are moving in on Detroit, U.S. automakers are doing exactly the opposite. And it\u2019s no surprise why\u2026<\/p>\n

Ford estimates that by 2020, one billion Chinese will be able to afford to buy cars. And the company has positioned itself perfectly. Today, Ford is the fastest-growing international car company in China, with a 12.6% hike in the first five months of 2013. The company is shooting for additional market share growth of 6% by 2015 and 7.5% by 2020.<\/p>\n

Two new SUVs \u2013 the Kuga and Explorer \u2013 are driving Ford\u2019s rapid growth. And the company plans to invest $4.9 billion through 2015 to double production capacity to approximately 1.6 million vehicles.<\/p>\n

Ultimately, Ford plans to one day generate 40% of its global sales from China.<\/p>\n

In comparison, GM saw 11% year-over-year growth, and it remains the biggest foreign auto company in terms of total vehicle sales. It sold around 1.3 million in the first five months of 2013, and the company expects to sell as many as three million vehicles before the year\u2019s end.<\/p>\n

GM is also planning an $11-billion investment to build four new plants, including a $1.3-billion Cadillac plant that just broke ground in China. In the meantime, the company will launch at least 10 new or revamped models every year through 2016, aiming for a production capacity of five million cars.<\/p>\n

My take? I\u2019d say investors in Ford and GM will fare much better than their Chinese counterparts chasing profits in downtown Detroit.<\/p>\n

Ahead of the tape,<\/p>\n

Karen Canella<\/p>\n

The post A Tale of Two Markets<\/a> appeared first on  | Wall Street Daily<\/a>.<\/p>\n

Article By WallStreetDaily.com<\/u><\/a><\/p>\n

Original Article: A Tale of Two Markets<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com Lately, China has been on something of a stealth mission in Detroit. And the timing is no coincidence. You see, there\u2019s an ancient Chinese proverb that says, \u201cA crisis is an opportunity for riding the dangerous wind.\u201d And Chinese investors are taking this idea to heart. Just look at Shanghai Auto (SAIC U.S.A.). … <\/p>\n

Continue reading “A Tale of Two Markets”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-40720","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/40720","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=40720"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/40720\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=40720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=40720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=40720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}