Himanshu Patel
Himanshu Patel
both expecting exposure fairly french home limited partly robust safer thanks
We're expecting both of them to do well. The French carmakers are safer than the Germans, partly because they have limited U.S. exposure and partly thanks to a fairly robust home market.
consensus downside risk upside
We still see more downside than upside risk to 2007 consensus earnings.
cannot timing
timing of this pending divestiture cannot be overlooked.
although becoming ford north pace production upbeat worry
Although we are becoming more upbeat on the pace of restructuring, we worry about Ford North American production outlook, particularly in 2007.
although believe demise further move sentiment speed toward
Although such a move has been rumored for some time, we believe the speed of Dana's demise will nonetheless further dampen sentiment toward the sector.
although auto demise further move sentiment speed toward
Although such a move has been rumored for some time, the speed of Dana?s demise will further dampen sentiment toward the auto industry.
correction maintain overweight recent safety vehicle
We maintain our overweight (rating), as we think a recent correction in this well-diversified vehicle safety supplier has been unjustified.
assist care extract gm health likely opportunity risk
We think GM will see it as more of an opportunity than a risk to assist in a Delphi bailout, as it will likely be able to extract sizable UAW health care concessions in return,
aggressive continue cycle due favour ford gm product
That said, we continue to favour GM over Ford due to the former's more favourable 2006 product cycle and its more aggressive restructuring approach.
aggressive continue cycle due favor favorable ford gm product
That said, we continue to favor GM over Ford due to the former's more favorable 2006 product cycle and its more aggressive restructuring approach.
bringing cap caps forcing forth gm inflation issue management similar suggest talks top
By forcing a health-care inflation cap for salaried workers, GM is bringing forth the issue of similar caps for hourly workers, which our talks with (GM) management suggest is a top priority.
diesel european production slowing weigh western worries
However, near-term worries on slowing diesel penetration and Western European production could weigh on the stock.
belief company cost earnings heightens likely meaningful reassure rebound targets
The company's specificity on 2006 cost targets ... is likely to reassure the market, and heightens our belief that the company will see a meaningful earnings rebound in 2006.
came difficult earnings gauge guidance impact isolate provide
The company's announcement that it will not provide earnings guidance going forward, however, came as more of a surprise, making it notably more difficult to isolate and gauge the impact of restructuring.