Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

GM surpasses Ford in market value

chart_ford_vs_gm.top.gif By Chris Isidore, senior writer

NEW YORK (CNNMoney) -- General Motors briefly passed rival Ford Motor in market value Monday, less than three months after GM's initial public offering.

Ford's stock plunged sharply Friday after it announced fourth quarter results that fell far short of analysts' forecasts, its first such miss in two years. Ford (F, Fortune 500) shares tumbled 13% and were off another 4% in afternoon trading Monday, before pulling back a bit.

While GM (GM) shares also lost ground both Friday and Monday, it suffered more modest declines, allowing its market value of $54.1 billion to top Ford's value of $54.0 billion.

Even with its earnings miss, Ford's full-year profit was likely well ahead of GM's profit, according to forecasts. GM is due to report results in February. But GM does have other advantages over its rival.

First, by going through a bankruptcy process with the help of a government bailout in 2009, GM's balance sheet is in much stronger shape than that of Ford.

Second, GM has stronger sales overseas. GM's Chinese joint ventures give it the No. 1 position in that market, which has been the largest market for new car purchases for the last two years. And China's importance is likely to grow. Ford is late to the game in China and is scrambling to try to catch up with other western automakers there.

Finally, GM's U.S. sales still outpace those of Ford, even as Ford gains market share.

But avoiding bankruptcy and gaining market share helped make Ford the investor favorite.

And even with the recent decline in stock price, its shares are up more than 50% since the start of 2010, and it's worth more than ten times its value at the low-point of early 2009, when bankruptcy troubles hung over the industry. To top of page

Search for Jobs

Index Last Change % Change
Dow 18,223.03 77.32 0.43%
Nasdaq 5,309.83 0.00 0.00%
S&P 500 2,151.33 10.17 0.47%
Treasuries 1.76 0.02 1.32%
Data as of 5:21am ET
Company Price Change % Change
AT&T Inc 36.86 -0.63 -1.68%
Bank of America Corp... 16.77 0.10 0.60%
Chesapeake Energy Co... 6.36 -0.32 -4.79%
Microsoft Corp 61.00 1.34 2.25%
Time Warner Inc 86.74 -2.74 -3.06%
Data as of Oct 24


One of the clear messages from Consumer Reports dependability survey was that cars that have recently been totally redesigned tend be less dependable. More

Stocks are widely expected to drop close to 10% if Trump wins the presidency. But even if Clinton wins, stocks could still sell-off the day after the election. More

President Obama says the U.S. is still trying to figure out who carried out the massive cyberattack that crippled popular websites like Twitter and Netflix. More

The University of Illinois partnered with Coursera to launch one of the most affordable online MBA programs yet. More