[video] Jim Cramer: Buy GM, Be Careful of Ford

Tickers in this article: F GM
The video this transcript is based on appeared on December 2nd.

NEW YORK (TheStreet) -- Jim Cramer says GM has three things going for it; Europe sales are bouncing back, China is strong and the automaker has also done a good job of cutting costs.

VIDEO TRANSCRIPT:

Jim Cramer: I like GM here. Now it's funny. when you run a portfolio, like Stephanie and I do for ActionAlertsPlus.com, can't own a million stocks. You can't be a kid in a candy store, but GM is on our list. Why? Because I think GM sales are going to be superb. Remember, they got a three-legged stool here.

They've got big Europe and I think Europe's coming back and they've taken some big costs out. They've got China. I think China's very strong. They had really good PMI the other day. I also think that the United States is strong. Why not buy Ford? Well, Ford has got an overhang and the overhang is Al Mulally not declaring that he wants to stay at Ford and finish the job.

Now you might say, "Listen, the job's already finished. He's got the thing on a turnaround." But we have still not seen the explosion in earnings that I expected Al Mulally to put up before he retires. So I like GM more than I like Ford, and I think the numbers will show that's the case by GM.