Is the Auto Industry a Complete Wreck?

The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Isaac Pino and research analyst Lyons George discuss topics around the investing world.

In today's edition, Isaac and Lyons gear up for a top-down analysis of the auto market. Overall, 2012 has shaped up to be a solid rebuilding year for automakers, many of which are benefiting from pent-up demand. In the cases of Ford and GM, they've strengthened their balance sheet, developed flashy fuel-efficient vehicles, and navigated foreign markets deftly for the most part. Still, investors and consumers seem utterly uninterested. Why? Well, investors don't appreciate the downside risk presented by manufacturers heavily exposed to Europe. Further, potential customers seem to be diminishing in the United States. For the younger generation, a car doesn't necessarily represent freedom and independence. Demographic and geographic shifts are taking place, and the bright spots in the car market might not be the new-and-improved automakers. Watch the following video for additional insight.

Investors looking for less exposure to an embattled Europe and slow-growing auto sector should take a look at a stock poised to profit in fast-growing countries. The company our analysts identified is led by exceptional, time-tested leaders and has so much promise that we've dubbed it "The Motley Fool's Top Stock for 2012." We've created a special free report for investors to uncover this soon-to-be rock star that's revolutionizing commerce in Latin America, and you can get instant access to the name of this company by clicking here to download it now.

Isaac Pino owns shares of Zipcar. Lyons George has no positions in the stocks mentioned above. The Motley Fool owns shares of Ford, Tesla Motors, and Zipcar. Motley Fool newsletter services recommend Ford, General Motors, Tesla Motors, and Zipcar. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 25, 2012, at 11:27 AM, spawn44 wrote:

    I take it you guys weren't big buyers of the autos a few years ago when they hit rock bottom.

Add your comment.

DocumentId: 1894870, ~/Articles/ArticleHandler.aspx, 4/20/2014 7:09:16 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement