Goldman Sachs announced a major change of heart this week, as a new report by analyst Patrick Archambault detailed the firm’s decision to upgrade Ford Motor Co F 2.47% from Neutral to Buy and downgrade General Motors Co GM 3.34% from Buy to Neutral. According to the report, growth was the main driver of the rotation decision.
With the benefits of volume, mix and pricing resulting from the launch of its F-150, Ford is now firing on all cylinders. Goldman sees GM, on the other hand, scrambling to compete with Ford on truck incentives.
China is also a major differentiator between the two companies. Goldman notes that, while Ford has been improving its positioning in China, GM “looks vulnerable” when it comes to its China guidance.
Goldman is now projecting…
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