With the growing demand for zero emission vehicles, and the government’s and private efforts in addressing the shortage of semiconductors, the automotive industry should see a strong recovery. Ford (F), and Volkswagen (DE) are two of the most well-known automakers. What stock do you think is the best buy? Volkswagen AG (OTC-:), a company based in Wolfsburg in Germany, manufactures and markets automobiles in North America, South America and Europe. There are four main segments to the company: Passenger Cars, Light Commercial Vehicles, Commercial Vehicles, Power Engineering and Financial Services. Ford Motor Company (NYSE 🙂 design, manufactures and markets a variety of Ford vehicles including cars, trucks, sport utility vehicles, electric vehicles, and luxury Lincoln vehicles. The company operates in three main segments: Automotive, Mobility and Ford Credit.

Auto manufacturing has been negatively affected by the global shortage of semiconductors and supply chain disruption. However, the government and private sectors can make huge investments in semiconductor production to address the problem. This will help manufacturers re-open their operations. This, along with the increasing demand for electric vehicles due to rising oil prices and climate change concerns, should drive the industry’s growth. Traditional automakers may also benefit from their extensive product range and market leadership. Market Research Future reports that the industry will grow by 4.5% between 2021-2028, according to their report. F as well as VWAGY are both expected to benefit.

F has gained 56.6% during the past nine month, while VWAGY only returned 13.4%. Also, F’s 114.2% gains over the past year are significantly higher than VWAGY’s 54.4% returns. Moreover, F is the clear winner with 125.4% gains versus VWAGY’s 42.3% returns in terms of year-to-date performance.

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