Is the Auto Industry a Complete Wreck?

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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.

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At the time this article was published Isaac Pinoowns 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 recommendFord, General Motors, Tesla Motors, and Zipcar. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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