GM (GM - Get Report) announced Monday it was putting $500 million into Lyft's latest $1 billion fund-raising round. Efraim Levy, analyst at S&P Capital IQ, said GM's investment in the ride-sharing service is hardly the only positive thing the automaker has going for it.
"Lyft has the app so when somebody wants to order a Lyft, they know how to get it," said Levy. "GM knows how to manufacture the vehicles that can be used to partner with Lyft. I think together there is a strategic benefit for both companies considering the way the auto industry is heading."
Shares of GM fell 2% in 2015, while shares of Ford (F - Get Report) dropped 8% for the year despite strong North American sales. Levy is bullish on Ford, saying the automaker was hurt by the strong U.S. dollar last year, as well as weakness in certain overseas markets.
"There have been some weak spots internationally in different emerging markets," said Levy. "When oil prices went down in those territories, demand for the product also dropped, such as in South America."
Shares of auto parts manufacturer Lear (LEA - Get Report) rose 25% last year even as GM and Ford saw their stocks fall. Levy said there is a high correlation between the companies, yet it does not always translate over to their stock prices.
"Lear is a company that is able to generate a lot of free cash flow, they have improving margins, and they are expanding their customer base," said Levy. "All these things have been positive for them and investors rewarded them for it."
Finally, Levy is still a fan of Magna International (MGA - Get Report) , even though the Canadian parts maker saw its stock drop 25% last year. He said he likes Magna's management and is "surprised" it fared as poorly as it did.
"They have wonderful technology," said Levy. "If they want, they can build a whole car on their own, even though they won't do that because they would be competing with their own customers."