US auto makers are driving away investors because of negative numbers and at the same time oil companies are getting the attention of many because of all time profit. Whats driving these companies in two different directions? The price of oil plays in, but there are other things contributing to this mayhem.

Ford Motor Co. (F – 11) is reporting a $1.2 billion dollar first quarter loss making it Ford’s worst quarter loss since 2001. Ford is struggling because of employees and the way they set the deals for their workers when times where good. Now since things are bad Ford has to cut 30,000 jobs and shut down many plants because of declining sales and high fixed costs. Part of this quarter loss includes the costs of layoffs and buyouts and pay for hourly workers whose plants have been idled. GM is also in the same boat as Ford.

Another thing that is bringing these US auto makers down is the quality of work and how they never change with the people. Now one auto company that gave a vision to many people is set to take on GM (GM – 21.79) to become the worlds largest auto maker and that is Toyota (TM – 117.51). Toyota cars are the top things on the markets as back ordered Prius’s are on the wish list of many Americans.

Don’t expect the US auto makers to fall flat as this has been a trend throughout the auto industry for many decades. At least once in a decade the car companies fall a bit and then bracing for their fall they come stronger.

While many Americans were driving their monster SUV’s burning fuel faster then the trucker behind you Brazil was putting out flex fuel cars for their people. Brazil was preparing for the day of high oil and the great demand of oil. Seeing this US auto makers where going to get a piece of the market in Brazil as they developed flex fuel cars for the people of Brazil. A flex fuel car is gasoline mixed with varying levels of ethanol and these cars will make up 90% of the cars being sold in Brazil for 2006. From this Brazil has become a oil independent country and now the US auto makers are introducing these cars to consumers.

People wanted change and the auto makers are giving us the change we needed. For the time being these US auto stocks will be in a rebuilding stage, but don’t give up on these gems as the future will bring them back to their glory days. This will be a great bargain for a long term investment for many.