Introduction
There’s not a lot to love about the auto industry. It’s mature and faces significant technological and end-market change. It has a history of low returns on capital and being a political football between unions, politicians, safety advocates and environmentalists. The industry is stunningly competitive, leading to lousy stock returns relative to other equities over the last 30 years. With those characteristics, why on earth would anyone want to invest?
Even in the best industry there can be lousy investments, and even in the worst industry there can be good investments. It depends on