NEW YORK (
TheStreet's Lindsey Bell and Stephanie Link met to discuss the recovery in the auto industry and the boost the industry is receiving from Europe.
Link has recently added
(F - Get Report) to the Action Alerts PLUS portfolio because she believes Europe has bottomed, or is very close to bottoming.
She also thinks that Europe was, and still is, the main concern holding investors back from putting money in the auto industry. Although sales in North America have been strong, with an annual sales rate of 15 million vehicles, discomfort about the stability of Europe is a big red flag for many.
But Link has listened to what companies are saying and how the auto parts supply companies are acting.
"I've kept a close eye on
TRW Automotive Holdings
(TRW - Get Report)
(BWA - Get Report)
," she said, "these companies are actually signaling that there are better times ahead."
Bell asked whether China was playing a significant role for Fold going forward, and Link said she doesn't think it will have an immediate impact. She noted that China is only 2% of Ford's current sales and that while the company is investing heavily in the area, that it will take time to see significant results.
Link also added that she's a huge believer in BorgWarner. The recent quarter was packed with good news and with management expecting margin expansion, she said she thinks investors can own it along with Ford.
"I think you can own both of them comfortably," she concluded.
At the the time of publication, the Action Alerts PLUS portfolio held shares of Ford.
-- Written by Bret Kenwell in Petoskey, Mich.