NEW YORK (TheStreet) -- Auto stocks have been doing well in 2013, with shares of General Motors (GM) and Ford (F) up essentially the same percentage year to date. However, that doesn't stop TheStreet's Jim Cramer from making his pick.
Some investors might just say to buy both automakers, but when you're running the Action Alerts PLUS portfolio, you simply cannot do that. That's why Cramer said he's buying GM.
He suggested that the automaker's sales should remain robust and not just in the United States.
Cramer is looking at a rebounding European economy as a reason why the automaker should continue to do well, especially after rigorous cost cutting in the region over the past several years.
He also said China should do well. The country recently posted a strong Purchasing Manager's Index number, indicating that the country's economy is continuing to hum higher.
As for Ford, Cramer said the potential departure of CEO Alan Mulally is still a stumbling block until the executive makes it clear that he plans to stay.
Perhaps he will stay and unlock future earnings power, but until then, Cramer concluded that he's sticking with GM.
-- Written by Bret Kenwell in Petoskey, Mich.