Investing in the stock market can be difficult and time-consuming, as you spend countless hours researching and picking the right stocks. With the recent recession hitting the stock market hard and the level of inflation rising, many investors are wondering if now is the time to jump in and start investing. Fortunately, there are certain companies that not only weathered the recent recession, but also managed to grow quickly, make shareholders happy, and put money in their pockets. Here are 7 car companies to invest in during a recession.
1) General Motors
General Motors is one of the oldest and most iconic car companies in America. It’s also been through some tough times recently, including a bankruptcy filing in 2009. Despite all that, GM has managed to rebound and is now profitable once again. Thanks to strong sales of its SUVs and pickup trucks, GM is weathering the current economic downturn better than most other automakers. If you’re looking for a long-term investment in the auto industry, GM is worth considering.
2) Ford Motor Company
The Ford Motor Company is one of the best 5 EV Stocks to Buy in 2022.
its an American multinational automaker that has its main headquarters in Dearborn, Michigan, a suburb of Detroit. The company sells automobiles and commercial vehicles under the Ford brand and most luxury cars under the Lincoln brand. Ford also owns Brazilian SUV manufacturer Troller, an 8% stake in Aston Martin of the United Kingdom, and a 49% stake in Jiangling Motors of China. The company is listed on the New York Stock Exchange and is controlled by the Ford family; they have minority ownership but the majority of the voting power.
3) Honda Motor Company
Even though the company is one of the oldest on this list, Honda has shown that it can still compete with the best of them. In 2019, they were the 10th largest car company in the world by unit sales. And despite a decrease in sales in 2020 due to the pandemic, they still managed to be profitable. They have a strong lineup of vehicles and are constantly innovating, which makes them a safe bet for investors. Japanese automakers like Toyota and Nissan might not seem like great investments because of their large exposure to the American market, but Toyota showed solid growth in 2019 thanks to healthy global demand. Nissan showed its ability to manage through economic downturns when it was able to get back on track after Japanese disasters caused lower profits from 2000-2010.
4) BMW Group
The BMW Group is one of the world’s leading manufacturers of premium cars and motorcycles and also provides premium financial and mobility services. The company has been through a lot lately, including production cuts and layoffs due to the pandemic. However, it has shown resilience and is still considered a strong company to invest in. Some of its recent initiatives include electric vehicles, self-driving technology, and ride-sharing.
5) Toyota Motor Corporation
Toyota Motor Corporation is one of the world’s largest automakers and of the best-performing stocks in 2021. The company has been in business for over 75 years and has weathered many economic downturns. Toyota is known for its quality, reliability, and durability. The company’s products are in high demand, even during a recession. Toyota also has a strong financial position, with over $40 billion in cash and investments on its balance sheet.
6) Mercedes-Benz
Mercedes-Benz is another one of the top car makers in the world and one of the best stocks to consider. They have emerged as leaders in alternative fuel technology, with their EnerGie models providing eco-friendly driving solutions for customers all over the globe. Alongside this commitment to sustainable mobility, they also maintain an impressive performance track record at prestigious racing events like the 24 Hours of Le Mans and Formula One’s Monaco Grand Prix.
7) Renault
Renault manufactures everything from budget family cars to luxurious sports models and workhorses like buses and trucks. It has taken on more than $20 billion worth of debt since 2000, but investors don’t seem too worried about this as they see Renault as a solid investment choice now that it has moved beyond being just an automaker into diverse industries such as renewable energy sources and automobiles designed for passengers with disabilities. The company is also diversifying its business model by increasing its focus on partnerships with other manufacturers which could make the company less susceptible to recessions.
Renault’s well-known logo adorns one side of the Parisian landmark Arc de Triomphe and its cars are sold around the world under different brands including Renault, Dacia, Renault Samsung Motors and Lada.
It’s not possible to go wrong investing in Renault when looking for stocks at reasonable prices.
