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The global semiconductor shortage, supply chain disruption, and labor issues have negatively impacted the auto manufacturing industry. However, huge government and private investments to boost semiconductor production should address the concern and help auto manufacturers restart 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. Moreover, traditional automakers could benefit more because of their broad portfolio of vehicles and market dominance. According to a report by Market Research Future, the automotive industry is expected to grow at a CAGR of 4.5% between 2021 and 2028. Therefore, both VWAGY and F should benefit.
F has gained 56.6% over the past nine months, while VWAGY has 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.
