Chicago, IL – December 30, 2009 – Zacks.com announces the latest Industry Outlook. Today, Zacks Equity Research discusses the Auto Industry, including Toyota Motors (TM), Nissan (NSANY), Honda Motor (HMC), Ford (F) and Daimler (DAI).

Auto Industry Outlook for 2010

The auto industry is a highly concentrated one. About 10 global automakers account for over 77% of the production worldwide. Among them, Toyota Motors (TM) leads with a 13.3% market share, while its domestic rivals including Nissan (NSANY) and its alliance with Renault account for 8.4% of the auto market, Honda Motor (HMC) 5.6% and Suzuki 3.8%. Among the Detroit automakers, General Motors (GM) holds 11.9% of the auto market, Ford (F) 7.8% and Chrysler-Fiat 6.4% of the auto industry.

The recent economic crisis has provided an impetus to a massive structural change in the auto industry, setting the stage for growth over the next decade. Given the high barriers to entry and need for scale economies (in operations, supply chain and marketing), the global auto industry landscape is expected to be ruled by global automakers and suppliers based in the six major auto markets of China, India, Japan, Korea, Western Europe and the U.S.

Higher fuel prices and concerns over global warming have pooled attention on the auto industry that either rely less on traditional fossil fuels or use renewable sources of less expensive energy. Thus, “green" alternatives such as fuel-efficient electric vehicles (EVs) and hybrids will attract consumers in the wealthier countries while flex-fuels such as ethanol and natural gas will be highly sought-after in the emerging auto markets where the local climate or resource base favors their usage by automakers over petroleum.

Consequently, there will be a variety of powertrain technologies in the auto industry by the next decade. It is likely that “green" cars will represent up to a third of total global sales in developed auto markets and up to 20% in urban areas of emerging auto markets by 2020. Some of the “green" cars have already generated a huge response in the auto industry. These include the Ford Focus, GM Volt, Daimler (DAI) Smart, Nissan Leaf and Toyota Prius.

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

The recent economic crisis has provided an impetus to a massive structural change in the auto industry, setting the stage for growth over the next decade. Given the high barriers to entry and need for scale economies (in operations, supply chain and marketing), the global auto industry landscape is expected to be ruled by global automakers and suppliers based in the six major auto markets of China, India, Japan, Korea, Western Europe and the U.S.

OPPORTUNITIES

To remain competitive, automakers will need to design vehicles that will meet the requirements of consumers in both mature and emerging markets. Automakers will focus on more user-friendly and low-cost vehicles that are also the most advanced technologically.

The automakers will continue to shift their production facilities from high-cost regions such as North America and the European Union to lower-cost regions such as China, India and South America. For example, Greater China and South America is projected to represent more than 50% of growth in global light vehicle production in the auto industry from 2008 to 2015.

There are two underlying factors behind this location shift in the auto industry. The first is the cost factor. The cost of labor in emerging auto markets continues to be a fraction of that in the developed world. The second is the demand factor. Many low cost regions, including the emerging auto markets, have high potential for growth. Thus, the shift in auto industry production facilities will lead to a localization of the manufacturing base that will bring down transportation costs. The emergence of trading blocs is also giving this process a push in the auto market. It is likely that over time there will be fewer car imports from outside a trade zone.

Further, automakers have started to reduce the number of technological platforms with a greater diversity of models produced from each platform in order to remain cost competitive in the auto industry. For example, Honda, with its flexible common platform, has developed three dimensionally distinct versions of the Accord, allowing for designs where 60% of the components are common. Ford aims to build 680,000 vehicles per core global platform within five years, up from current levels of 345,000 units. After emerging from its bankruptcy, General Motors has started focusing solely on four core brands – Chevrolet, Cadillac, Buick and GMC.

Higher fuel prices and concerns over global warming have pooled attention on the auto industry that either rely less on traditional fossil fuels or use renewable sources of less expensive energy. Thus, “green" alternatives such as fuel-efficient electric vehicles (EVs) and hybrids will attract consumers in the wealthier countries while flex-fuels such as ethanol and natural gas will be highly sought-after in the emerging auto markets where the local climate or resource base favors their usage by automakers over petroleum.

Consequently, there will be a variety of powertrain technologies in the auto industry by the next decade. It is likely that “green" cars will represent up to a third of total global sales in developed auto markets and up to 20% in urban areas of emerging auto markets by 2020. Some of the “green" cars have already generated a huge response in the auto industry. These include the Ford Focus, GM Volt, Daimler (DAI) Smart, Nissan Leaf and Toyota Prius.

The role of governments must not be overlooked. Governments in all major countries have become active auto industry players. Their investments through emergency loans and incentive packages, such as “Cash for Clunkers" in the U.S., are a good example of this. Moreover, governments' energy and environmental policies will be highly responsible in molding the auto industry in the coming years.

WEAKNESSES

Although automakers continue to focus on shifting their production facilities to new regions driven by cost and demand factors, developing the supplier networks remains one of the greatest challenges they face in the auto industry. Existing suppliers to automakers often lack the financial background to expand capacity in new markets. On the other hand, auto market suppliers are sensitive to technology transfers to local third parties, which may result in new and lower-cost competitors.

The financial condition of the majority of auto market suppliers continues to deteriorate, resulting from historically weak demand and higher dependence on automakers. According to the Original Equipment Suppliers Association (OESA), 13 major U.S. direct auto market suppliers and 2 indirect auto industry suppliers have filed for Chapter 11 bankruptcy or have had their assets foreclosed on, while many others in the auto industry have simply liquidated in the first half of 2009. They include prominent components auto market suppliers such as Visteon and Lear , who cater to General Motors and Ford.

According to OESA, 12% of the auto industry suppliers do not have sufficient working capital to support a 10%–25% expansion in production. Thus, despite the government’s sizable investment in the automakers, it is likely that there will be auto market suppliers who are unable to restart operations as automaker production resumes due to working capital shortfalls.

Higher dependence on automakers makes the auto market suppliers vulnerable to several maladies, primarily pricing pressure and production cuts. Pricing pressure from automakers is constricting auto market suppliers’ margins. On the other hand, production cuts by automakers driven by frequent market adjustments are negatively affecting their operations. Some of the auto industry suppliers who have a high reliance on a few automakers such as General Motors, Ford, Chrysler and Volkswagen include American Axle and Manufacturing (AXL), ArvinMeritor (ARM), Goodyear Tire and Rubber (GT), Magna International (MGA), Superior Industries (SUP), Tenneco (TEN) and TRW Automotive (TRW).

The shift in auto market consumer preferences towards hi-tech, fuel-efficient, environment-friendly vehicles, such as small cars/hybrids/EVs, is another issue. Auto market suppliers are expected to quickly adapt to the new technologies by investing in research and development, putting heavy capital burdens on them.

The automakers also face significant challenges in transforming the existing powertrain technologies into the new versions as far as marketability is concerned. As the number of technology applications increases, automakers and suppliers will need to be selective. Their criteria for choosing what to include and what not to will depend entirely on what the customers are willing to pay for.

The recent economic crisis has provided an impetus to a massive structural change in the auto industry, setting the stage for growth over the next decade. Given the high barriers to entry and need for scale economies (in operations, supply chain and marketing), the global auto industry landscape is expected to be ruled by global automakers and suppliers based in the six major auto markets of China, India, Japan, Korea, Western Europe and the U.S.

OPPORTUNITIES

To remain competitive, automakers will need to design vehicles that will meet the requirements of consumers in both mature and emerging markets. Automakers will focus on more user-friendly and low-cost vehicles that are also the most advanced technologically.

The automakers will continue to shift their production facilities from high-cost regions such as North America and the European Union to lower-cost regions such as China, India and South America. For example, Greater China and South America is projected to represent more than 50% of growth in global light vehicle production in the auto industry from 2008 to 2015.

There are two underlying factors behind this location shift in the auto industry. The first is the cost factor. The cost of labor in emerging auto markets continues to be a fraction of that in the developed world. The second is the demand factor. Many low cost regions, including the emerging auto markets, have high potential for growth. Thus, the shift in auto industry production facilities will lead to a localization of the manufacturing base that will bring down transportation costs. The emergence of trading blocs is also giving this process a push in the auto market. It is likely that over time there will be fewer car imports from outside a trade zone.

Further, automakers have started to reduce the number of technological platforms with a greater diversity of models produced from each platform in order to remain cost competitive in the auto industry. For example, Honda, with its flexible common platform, has developed three dimensionally distinct versions of the Accord, allowing for designs where 60% of the components are common. Ford aims to build 680,000 vehicles per core global platform within five years, up from current levels of 345,000 units. After emerging from its bankruptcy, General Motors has started focusing solely on four core brands – Chevrolet, Cadillac, Buick and GMC.

Higher fuel prices and concerns over global warming have pooled attention on the auto industry that either rely less on traditional fossil fuels or use renewable sources of less expensive energy. Thus, “green" alternatives such as fuel-efficient electric vehicles (EVs) and hybrids will attract consumers in the wealthier countries while flex-fuels such as ethanol and natural gas will be highly sought-after in the emerging auto markets where the local climate or resource base favors their usage by automakers over petroleum.

Consequently, there will be a variety of powertrain technologies in the auto industry by the next decade. It is likely that “green" cars will represent up to a third of total global sales in developed auto markets and up to 20% in urban areas of emerging auto markets by 2020. Some of the “green" cars have already generated a huge response in the auto industry. These include the Ford Focus, GM Volt, Daimler (DAI) Smart, Nissan Leaf and Toyota Prius.

The role of governments must not be overlooked. Governments in all major countries have become active auto industry players. Their investments through emergency loans and incentive packages, such as “Cash for Clunkers" in the U.S., are a good example of this. Moreover, governments' energy and environmental policies will be highly responsible in molding the auto industry in the coming years.

WEAKNESSES

Although automakers continue to focus on shifting their production facilities to new regions driven by cost and demand factors, developing the supplier networks remains one of the greatest challenges they face in the auto industry. Existing suppliers to automakers often lack the financial background to expand capacity in new markets. On the other hand, auto market suppliers are sensitive to technology transfers to local third parties, which may result in new and lower-cost competitors.

The financial condition of the majority of auto market suppliers continues to deteriorate, resulting from historically weak demand and higher dependence on automakers. According to the Original Equipment Suppliers Association (OESA), 13 major U.S. direct auto market suppliers and 2 indirect auto industry suppliers have filed for Chapter 11 bankruptcy or have had their assets foreclosed on, while many others in the auto industry have simply liquidated in the first half of 2009. They include prominent components auto market suppliers such as Visteon and Lear , who cater to General Motors and Ford.

According to OESA, 12% of the auto industry suppliers do not have sufficient working capital to support a 10%–25% expansion in production. Thus, despite the government’s sizable investment in the automakers, it is likely that there will be auto market suppliers who are unable to restart operations as automaker production resumes due to working capital shortfalls.

Higher dependence on automakers makes the auto market suppliers vulnerable to several maladies, primarily pricing pressure and production cuts. Pricing pressure from automakers is constricting auto market suppliers’ margins. On the other hand, production cuts by automakers driven by frequent market adjustments are negatively affecting their operations. Some of the auto industry suppliers who have a high reliance on a few automakers such as General Motors, Ford, Chrysler and Volkswagen include American Axle and Manufacturing (AXL), ArvinMeritor (ARM), Goodyear Tire and Rubber (GT), Magna International (MGA), Superior Industries (SUP), Tenneco (TEN) and TRW Automotive (TRW).

The shift in auto market consumer preferences towards hi-tech, fuel-efficient, environment-friendly vehicles, such as small cars/hybrids/EVs, is another issue. Auto market suppliers are expected to quickly adapt to the new technologies by investing in research and development, putting heavy capital burdens on them.

The automakers also face significant challenges in transforming the existing powertrain technologies into the new versions as far as marketability is concerned. As the number of technology applications increases, automakers and suppliers will need to be selective. Their criteria for choosing what to include and what not to will depend entirely on what the customers are willing to pay for.

Chicago, IL – November 20, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Toyota Motors (TM), Petroleo Brasileiro S.A. (PBR), ExxonMobil Corp. (XOM), Chevron Corp. (CVX) and Royal Dutch Shell PLC (RDS.A).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

Toyota’s 1st Sales Gain in 15 Months

Toyota Motors (TM) has posted its first year-over-year monthly sales gain across the globe in 15 months during October. The company’s sales rose 4% to more than 630,000 vehicles. In the U.S., the company’s sales fell 3.5%.

However, in the domestic market Toyota’s sales grew 15% helped by tax breaks for purchases of environment-friendly cars. In China, the company saw a staggering rise of 40% in sales. Toyota returned to profitability in the second quarter of fiscal 2010 ended Sep 30, 2009, after reporting losses since the third quarter of fiscal 2009.

The company posted a profit of ¥21.8 billion ($232 million) or ¥6.96 per share (7 cents) per share. This profit was attributed to government incentive programs across the world – such as the U.S. “Cash for Clunkers"– that helped the company recoup its market share. Consolidated revenue in the quarter dipped 24% to ¥4.54 trillion ($48 billion).

Automotive revenue fell 24% to ¥4.11 trillion ($44 billion) while Financial Services revenue shrank 17% to ¥307 billion ($4 billion). This was on the back of a decline in vehicle sales in each region as well as a negative impact from the appreciation of yen. Sales volume declined 16% to 1.64 million units due to a decrease in volume in all the regions except North America.

Petrobras Profit Exceeds Ests

Brazilian energy giant Petroleo Brasileiro S.A. (PBR), or Petrobras S.A. announced encouraging third quarter results, helped by strong performance from the Supply segment. Earnings per ADR came in at R$1.66 (96 cents), comfortably beating the Zacks Consensus Estimate of 80 cents. However, on a year-over-year basis, Petrobras’ earnings per ADR was down approximately 28.7%, hurt by lower prices of oil and natural gas. Still, they were better than the high double-digit earnings decline suffered by other majors such as ExxonMobil Corp. (XOM), Chevron Corp. (CVX), and Royal Dutch Shell PLC (RDS.A).

Total oil and gas production during the third quarter of 2009 reached 2,534 million oil-equivalent barrels per day, from 2,524 million in the previous quarter and 2,437 million in the same period of 2008. Compared to the third quarter of 2008, Brazilian oil and natural gas liquids production increased 4.8%, while international production was up 24.6%. However, Brazilian natural gas volumes were down 3.3% from the year-ago period, while international output during the quarter was down 6.0% year over year.

During the third quarter of 2009, the average sales price of oil in Brazil decreased 36.4% from the year-earlier period to $64 per barrel. Average sales price of international oil was down 16.9% year-over-year, reaching $57.16 per barrel. Regarding natural gas, average international sales price decreased 21.5% from the third quarter of 2008, while domestic price was down 61.5%.

Refining costs per barrel in Brazil was down 2.6% to $3.37 and internationally, it fell 45.2% to $3.51. Lifting cost per barrel moved down 24.5% in Brazil to $22.86, while overseas costs rose 9.4% to $5.6. Petrobras exported an average of 724,000 barrels of oil per day, 10.2% higher compared to the same period last year.

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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

According to the Associated Press (AP), China’s total vehicle sales were up 17.7% to 6.1 million vehicles during the first half of 2009. China has overtaken US auto sales for five of the past six months. The U.S. market temporarily took the lead in May 2009 only to drop again the following month.

Stimulus package including lower sales tax, subsidies to trade in older cars and other incentives provided by the government has helped sales in China. According to the AP, the government of China has reduced retail sales tax on small cars by 50% in the beginning of 2009.

The government is also providing subsidies in rural areas to increase demand. Global automakers such as Ford Motors (F), General Motors (GMGMQ) and Toyota Motors (TM) are counting on China to help drive their revenues as they struggle with falling demand in North America and other markets. Ford’s sales in China were up 14% year-over-year in the first five months of 2009. General Motors also notified that its sales in China in the first six months of 2009-soared 38% year-over-year, while it resorted to government aid and was reorganized under court protection for its US operations.

Toyota aims to boost total vehicle sales in China, including imports and models produced in partnership with Tianjin FAW, by 40% to 700,000 units in 2009, while its total production capacity is at 640,000 units. The gap could widen as it plans to achieve total sales of 1 million vehicles in China by 2010 and win a 10% market share.

Recently, Nissan Motor (NSANY) announced a sales target of 570,000 units for China, including both passenger and light commercial vehicles (LCVs) in 2009. Nissan's sales in China for 2008 were 545,000 units, an increase of 19% versus 2007. Nissan has a strong presence in the Chinese market through its joint venture with Dongfeng Motor Group. Zhengzhou Nissan Motor Co. (ZNA) an assembly joint venture between Nissan Motor and Dongfeng Motor has an LCV plant in Zhengzhou, Henan Province, China .

The company added another LCV plant at the same site, which is expected to begin operations in late 2010. This will bring the total production capacity of the ZNA site to 200,000 units per year by 2010.
 
Honda Motors' (HMC) production in China was down 4.3% year over year during the first three months of 2009. The company reported a drop of 67.5% in sales in Asia for the same period 2009.

As per media reports, sales in China are expected to exceed 11 million units in 2009. Total sales in China in 2008 were 9.4 million vehicles of which 6.8 million were passenger cars and 2.6 million were commercial vehicles.

Most -- if not all -- automakers are keeping an eye on joint venture and/or buyout opportunities within the industry in 2009. Also pending in the early part of the year is the question of a further auto industry bailout by the U.S. Federal government, though this concerns the American Big Three, not the Japanese automakers.

TOYOTA
Yaris - Sales are up 27% for this car that gets 32 MPG and has a 4 star crash rating with a economical price of $16K. There is not enough leg room and a strange dashboard. The interior needs a major upgrade.
Tundra - Sales are down 25% for this pickup with 15 MPG. Crash protection is only 3/4 stars, and the price is high, at $30-40K. The interior is nice, but the pickup is tough to get into.
Tacoma - Sales are down 14% for this pickup that gets 19 MPG. Crash protection is 4/5 stars, and the price is in the high 20s. The interior needs a major upgrade.
Highlander - Sales are down 12%. Mileage is 20 MPG, with a price in the low $30s. The interior is nice. There is a hybrid version that gets 26 MPG yet costs $47K.
Prius - Sales are down 5% for this hybrid that gets 47 MPG. The price is $25K and there is 4/5-star crash protection. There is not enough leg room and this car has a strange dashboard.
Camry - Sales are down 3% for this car that gets 25 MPG and costs $25-30K. The car has a nice interior and 4/5-star crash protection. There is a hybrid version that gets 34 MPG and costs $32K.
Sienna - Sales are down 11% for this van that gets 19 MPG. There is 4/5-star crash protection and the cost is high at $30-40K. The interior needs an upgrade.
Land Cruiser - Sales are down 12% for this large SUV that gets 16 MPG yet has a price tag over $70K. The interior is nice.
RAV4 - sales are down 19% for this crossover that gets 23 MPG. There is not enough legroom in this retro interior. The cost is $25-30K with 4/5-star crash protection.
Corolla - Sales are down 4% for this car that gets 31 MPG and has 4/5-star protection. The interior needs an upgrade, but the price is $22K. There is not enough leg room.
Models that should be discontinued - Venza, 4Runner, FT Cruiser, Avalon

LEXUS
Owned by Toyota.
RX350 - Sales are down 18% for this crossover with 20 MPG that has 4/5-star safety yet costs $47K. The crossover is stylistic with a futuristic interior.
Models that should be consolidated - IS 250 and GS350 and IS350; ES350 and LS460; LX570 and GX470
Models that should be discontinued - RX400; RX450

SCION
Owned by Toyota.
Models that should be consolidated - XD and XB

MAZDA
Mazda 3 - Sales are down 6% for this sporty hatchback that gets 25 MPG and is 95% Japan sourced. The cost is $20-25K and there is 4-star safety. The interior is retro-designed. Emissions are 40% lower than the average car.
Mazda 6 - Sales are down 6% for this stylish car with a retro interior. 45% is from the US and 30% is from Japan. There is 5-star safety and the cost is $33K. Emissions are average, and mileage is 21 MPG.
Models that should be consolidated - CX9 and CX7 and Mazda 5

SUZUKI
Models that should be consolidated - XL7 and Grand Vitara

SUBARU
This company is owned by Fuji Heavy Industries.
Overall, this product line has an SUV focus, but vehicles have too much plastic, in our opinion.
Models that should be discontinued - Impreza.

NISSAN
Altima - Sales are up 2%. Gas mileage is excellent, in the 23-24 MPG range. Prices range from $22-27K. The car has 55% US content and 21% Japanese content. Overall, the interior could use some improvement, and there appeared to be not enough leg room. There is a hybrid version that costs $30K and gets 34 MPG.
Rogue - This is a hot-selling crossover that gets 25 MPG with 4/5 star safety and a $27K price tag. There is 100% Japanese content.
Versa - Sales are up 13%. This hatchback gets 28 MPG and has 4 star safety. The price is low, at 18K. There is 12% US, 34% Japan and 42% Mexico content. Overall, there is not much room and the interior needs improvement.
Murano - Sales are off 10%, but this a 21 MPG vehicle that has 4/5 star safety and a nice interior. It is a crossover and has 100% Japanese content. This vehicle is rather pricey, ranging from $29K-41K.
Models that should be discontinued - Maxima.
Models that should be consolidated - Pathfinder with Armada with XTerra; Frontier with Titan

INFINITI
This company is owned by Nissan.
In general, we feel these vehicles have low gas mileage, are expensive, and the interiors need improvement.
Models that should be consolidated - G37S with M45; FX35 with EX35

HONDA
Accord - Sales are up 2% for this car that gets 25 MPG. There is 4/5 star safety and 65% US content/20% Japan content. The price is $25-30K, and the interior is nice and sporty. This car has one of the best smog emissions ratios.
Civic - Sales are up 10% for this sporty car that gets 31 MPG with a nice interior. There is 4/5 star safety, and the price is $18-24K. There is 60% US and 30% Japanese content. Smog emission levels are excellent. There is a natural gas version and a hybrid version that gets 42 MPG and costs $24K.
Fit - This is a hot-selling crossover that gets 30 MPG and has 4/5 star safety. The cost is $19K. Smog emissions are 25% below average. The interior is futuristic and 100% of content is from Japan.
CRV - Sales are down 7% for this crossover. The interior needs improvement. Smog emissions are average, and there is 23 MPG and the price is $25K. There is 4/5 star safety and 50% US content and 35% Japanese content.
Pilot - Sales are down 17% for this SUV. The interior needs improvement and there is not enough leg room. Gas mileage is 20 MPG with average smog emissions. There is 4/5 star safety and the price is $28-34K. There is 70% US content.
Odyssey - Sales are down 16% for this van that has 21 MPG. The interior is nice, but there is not enough legroom. The price is $34-41K. There is 4/5 star safety and 80% US content. Smog emissions are average.
Models that should be discontinued - S2000, Element

ACURA
This company is owned by Honda.
Overall, we feel this line is overpriced and interiors need improvement. Models that should be consolidated - TSX with RL with TL; RDX with MDX

Paul Raman, CFA is a senior analyst covering the automotive industry for Zacks Equity Research.
"HMC" Free Stock Analysis: Buy? Sell? Hold?
"TM" Free Stock Analysis: Buy? Sell? Hold?
"NSANY" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

On the flipside of senior equity analyst Paul Raman, CFA's notes on the San Diego Auto Show, we now cast the spotlight toward where auto companies might need to make near-term improvements. Most if not all companies will be looking to make strategic acquisitions and/or joint ventures to increase their global positions.

SUBARU (Forester, Outback, Impreza, Legacy, Tribeca)
This company is owned by Fuji Heavy Industries.
Overall, this product line has an SUV focus, but vehicles have too much plastic, in our opinion. 
Models that should be discontinued - Impreza.

NISSAN
Murano - Sales are off 10%, but this a 21 MPG vehicle that has 4/5 star safety and a nice interior. It is a crossover and has 100% Japanese content. This vehicle is rather pricey, ranging from $29K-41K. 
Models that should be discontinued - Maxima.
Models that should be consolidated - Pathfinder with Armada with XTerra; Frontier with Titan

INFINITI
This company is owned by Nissan.
In general, we feel these vehicles have low gas mileage, are expensive, and the interiors need improvement.
Models that should be consolidated - G37S with M45; FX35 with EX35

HONDA
CRV - Sales are down 7% for this crossover. The interior needs improvement. Smog emissions are average, and there is 23 MPG and the price is $25K. There is 4/5 star safety and 50% US content and 35% Japanese content.
Pilot - Sales are down 17% for this SUV. The interior needs improvement and there is not enough leg room. Gas mileage is 20 MPG with average smog emissions. There is 4/5 star safety and the price is $28-34K. There is 70% US content.
Odyssey - Sales are down 16% for this van that has 21 MPG. The interior is nice, but there is not enough legroom. The price is $34-41K. There is 4/5 star safety and 80% US content. Smog emissions are average.
Models that should be discontinued - S2000, Element

ACURA
This company is owned by Honda.
Overall, we feel this line is overpriced and interiors need improvement.
Models that should be consolidated - TSX with RL with TL; RDX with MDX

DAIMLER
E-Class (Mercedes Benz) - Sales are down 14% for this classy looking car. There is a retro interior, but not enough leg room. Mileage is 18 MPG and the price is $53-63K.
Smart Car - This costs $18K and has mileage of 37 MPG. There is not enough leg room, the interior needs an upgrade, and safety is only 3/5 stars. Emissions are average, and 44% of content is from Germany while 35% is from Japan.
Models that should be consolidated - GL with ML
Models that should be discontinued - SL63, S550, SL550, GLK, CL, R

MAZDA
Mazda 3 - Sales are down 6% for this sporty hatchback that gets 25 MPG and is 95% Japan sourced. The cost is $20-25K and there is 4-star safety. The interior is retro-designed. Emissions are 40% lower than the average car.
Mazda 6 - Sales are down 6% for this stylish car with a retro interior. 45% is from the US and 30% is from Japan. There is 5-star safety and the cost is $33K. Emissions are average, and mileage is 21 MPG.
Models that should be consolidated - CX9 and CX7 and Mazda 5

SUZUKI
Models that should be consolidated - XL7 and Grand Vitara

VOLKSWAGEN
Models that should be consolidated - Passat and EO3 and CC; Toureg and Tiguan; GTI and Rabbit

AUDI
Models that should be consolidated - Q7 and A4; A8L and A6; TTS and R8

HYUNDAI
Sonata - Sales are down 2% for this rather plain car that emits 50% less pollution than average. There is not enough leg room. The cost is $20-25K, and mileage is 28 MPG.
Models that should be consolidated - Santa Fe and Veracruz and Tucson
Models that should be discontinued -  Azera; Genesis

KIA
Owned by Hyundai.
Spectra - Sales are down 2% for this car that costs $16K and gets 28 MPG. There is 4/5-star protection and 88% of content is Korean. The interior needs improvement and the car needs to be more sophisticated. There is not enough leg room.
Models that should be consolidated - Sportage and Rondo and Borrega and Sorrento; Optima and Amanti 

FORD
Mustang - Sales are down 28% for this 20 MPG sport car with 5-star protection and a $25K price tag. There is not enough leg room and the interior has a retro-focus.
F150 - Sales are down 26% for this very popular pickup that gets 18 MPG. Prices range from $30-40K. The interior is nice, and has a retro-focus.
Explorer - Sales are down 43% for this pickup that gets 17 MPG and costs $36K. There is 5 star protection.
Escape - Sales are down 3% for this 5-star protection SUV that costs $27K and gets 24 MPG. This SUV has a nice interior, but not enough leg room. There are 2 hybrid models. They get 33 MPG and cost $34K.
Edge - Sales are down 4% for this car that gets 21 MPG and costs $30-35K. There is a nice interior with plenty of room. There is 5-star protection.
Models that should be discontinued - Taurus, Ranger

LINCOLN
Owned by Ford.
Models that should be consolidated - MKZ and MKS and Sable and Milan; Navigator and Mariner

VOLVO
Volvo is owned by Ford.
Models that should be consolidated - XC70 and XC60; C30 and C90; S80 and C70 and S60 and S40
Models that should be discontinued - XC90

TOYOTA
Tundra - Sales are down 25% for this pickup with 15 MPG. Crash protection is only 3/4 stars, and the price is high, at $30-40K. The interior is nice, but the pickup is tough to get into.
Tacoma - Sales are down 14% for this pickup that gets 19 MPG. Crash protection is 4/5 stars, and the price is in the high 20s. The interior needs a major upgrade.
Highlander - Sales are down 12%. Mileage is 20 MPG, with a price in the low $30s. The interior is nice. There is a hybrid version that gets 26 MPG yet costs $47K.
Prius - Sales are down 5% for this hybrid that gets 47 MPG. The price is $25K and there is 4/5-star crash protection. There is not enough leg room and this car has a strange dashboard.
Camry - Sales are down 3% for this car that gets 25 MPG and costs $25-30K. The car has a nice interior and 4/5-star crash protection. There is a hybrid version that gets 34 MPG and costs $32K.
Sienna - Sales are down 11% for this van that gets 19 MPG. There is 4/5-star crash protection and the cost is high at $30-40K. The interior needs an upgrade.
Land Cruiser - Sales are down 12% for this large SUV that gets 16 MPG yet has a price tag over $70K. The interior is nice.
RAV4 - sales are down 19% for this crossover that gets 23 MPG. There is not enough legroom in this retro interior.  The cost is $25-30K with 4/5-star crash protection.
Corolla - Sales are down 4% for this car that gets 31 MPG and has 4/5-star protection. The interior needs an upgrade, but the price is $22K. There is not enough leg room.
Models that should be discontinued - Venza, 4Runner, FT Cruiser, Avalon

LEXUS
Owned by Toyota.
RX350 - Sales are down 18% for this crossover with 20 MPG that has 4/5-star safety yet costs $47K. The crossover is stylistic with a futuristic interior.
Models that should be consolidated - IS 250 and GS350 and IS350; ES350 and LS460; LX570 and GX470;
Models that should be discontinued - RX400; RX450

SCION
Owned by Toyota
Models that should be consolidated - XD and XB

BMW
3-Series - Sales are down 17% for this classy looking car with an excellent interior. The price is $37-44K. This is a very sporty vehicle.
Models that should be consolidated - X3 and X5
Models that should be discontinued - 135i, 550i, M5

CHEVROLET
Owned by General Motors.
Trailblazer - Sales are down 41% for this SUV. Gas mileage is only 15 MPG and crash rating is only 3/5 stars. The price is high, being $32-39K. Smog emissions are average. There is 85% US content.
Silverado - Sales are down 24%. It is a plain pickup with a nice interior and 18 MPG. There is 4/5-star safety and 75% US content. There are 2 ethanol and 1 hybrid versions in this product line.
Impala - Sales are down 16%. This car has a nice sporty interior, 22 MPG and 4/5 star safety rating. There is 85% US content, and a price of $31K. It is a classy looking car. There is a hybrid version that gets 30 MPG and costs $26K.
Tahoe - Sales are down 36%. There is not enough leg room. There is 65% US content and 27% Mexico content along with average emission levels. The price is high, at $57K. This gets 17 MPG and has a 5-star safety rating. A hybrid version is available.
HHR - Sales are down 3% for this crossover. The interior needs an upgrade. Content is 50% US and 39% Mexico. This costs $20K and gets 26 MPG. Emission levels are average and there is 4/5-star safety ratings.
Models that should be consolidated - Traverse and Equinox
Models that should be discontinued - Colorado, Avalanche, Suburban

HUMMER
Owned by General Motors.
Models that should be consolidated - H2 and H3

SAAB 
Owned by General Motors.
Models that should be consolidated - 93 and 95

GMC
This company is owned by General Motors.
Sierra - Sales are down 17% for this pickup that gets 17 MPG. The price is $28-33K. There is 4/5 star safety, and the interior needs improvement. There is 75% US and 18% Mexico content. Smog emissions are average. There are 3 flex fuel ethanol models available.
Models that should be discontinued - Canyon
Models that should be consolidated - Denali with Yukon with Acadia

PONTIAC
Owned by GM.
Models that should be consolidated - G3 with Vibe
Models that should be discontinued - G5

BUICK
This company is owned by General Motors.
Models that should be consolidated - Lucerne with Lacrosse

SATURN
This company is owned by General Motors.
Models that should be discontinued - Astra and Outlook

CADILLAC
This company is owned by General Motors.
Models that should be consolidated - Excalade with SRX; DTS with STS with CTS

CHRYSLER
300 - Sales are down 43%. This car gets 20 MPG and costs 35-40K. There is 4/5-star safety and 63% US content. Emissions levels are average, and the interior is plain and elegant.
Models that should be discontinued - Sebring

DODGE
Owned by Chrysler.
Ram - Sales are down 29% for this pickup with 53% US content and 18% Mexico content. Mileage is 17 MPG, and the price is $35-45K. Emissions levels are average, and the interior and dashboard are excellent.
Caliber - Sales are down 8% for this nifty car that gets 25 MPG and has a 4/5-star crash rating. There is 68% US content, and the price is $18K. The car is stylish and has a sporty interior. Emissions are average.
Charger - Sales are down 12% with a price tag of $26K and 21 MPG. This car emits smog at a rate of 30% above average. This is sporty looking both exterior and interior. There is 4/5-star safety and 60% US content.
Town and Country - Sales are down 7% for this plain interior vehicle with not enough leg room. There is 73% US content. Mileage is 20 MPG, and there is 4/5-star safety. Emission levels are average, and the price is $42K. There is a flex fuel version that gets 21 MPG and costs $30K.
Caravan/Grand Caravan - Sales down 22%. The interior needs and upgrade and there is not enough leg room. Smog emission levels are 50% above average. There is 73% US content and 4/5-star safety. The price is high, at $39K. Mileage is 21 MPG.
Models that should be discontinued -  Leer, Avenger, Sprinter, Durango

JEEP
This company is owned by Chrysler.
Grand Cherokee - Sales are down 38%. These SUVs get 16 MPG and cost $35K. There is 61% US content and 4/5-star safety. Interiors are nice. Emissions are 30% higher than average.
Wrangler - Sales are down 30%. The price is $25-35K. There is 57% US content and 4/5-star safety. The interior is retro, but needs an upgrade. There is not enough leg room and overall this vehicle has a unique look. Emissions are average.
Models that should be consolidated - Compass and Patriot and Liberty and Commander

Read the full analyst report on GM.

Read the full analyst report on F.

Read the full analyst report on TM.

Read the full analyst report on HMC.

Read the full analyst report on DAI.

Read the full analyst report on NSANY.

Zacks senior auto industry analyst Paul Raman, CFA recently published his extensive notes on the San Diego Auto Show, and we pulled his positive stories to illustrate where -- if anywhere -- automakers might have demonstrated a workable starting point.

NISSAN
Altima - Sales are up 2%. Gas mileage is excellent, in the 23-24 MPG range. Prices range from $22-27K. The car has 55% US content and 21% Japanese content. Overall, the interior could use some improvement, and there appeared to be not enough leg room. There is a hybrid version that costs $30K and gets 34 MPG.
Rogue - This is a hot-selling crossover that gets 25 MPG with 4/5 star safety and a $27K price tag. There is 100% Japanese content.
Versa - Sales are up 13%. This hatchback gets 28 MPG and has 4 star safety. The price is low, at 18K. There is 12% US, 34% Japan and 42% Mexico content. Overall, there is not much room and the interior needs improvement.

HONDA
Accord - Sales are up 2% for this car that gets 25 MPG. There is 4/5 star safety and 65% US content/20% Japan content. The price is $25-30K, and the interior is nice and sporty. This car has one of the best smog emissions ratios.
Civic - Sales are up 10% for this sporty car that gets 31 MPG with a nice interior. There is 4/5 star safety, and the price is $18-24K. There is 60% US and 30% Japanese content. Smog emission levels are excellent. There is a natural gas version and a hybrid version that gets 42 MPG and costs $24K.
Fit - This is a hot-selling crossover that gets 30 MPG and has 4/5 star safety. The cost is $19K. Smog emissions are 25% below average. The interior is futuristic and 100% of content is from Japan.

DAIMLER
M-Class (Mercedes Benz) - Sales are up 6% for these SUVs that have a retro interior and get 18 MPG. There is not enough legroom and the price is $47-55K.
C-Class (Mercedes Benz) - Sales are up 24% for this classy looking car with a nice interior. There is plenty of room and mileage is 18-19 MPG. The price is $33-40K.

VOLKSWAGEN
Jetta - Sales are up 13% for this car that costs $25K and gets 25 MPG. The interior needs to be improved and there is not enough leg room. Emissions are 30% below average.

HYUNDAI
Elantra - Sales are up 15% for this $17-18K car. Mileage is 29 MPG. This is a rather plain car that needs a major interior upgrade.

FORD
Focus - Sales are up 22% for this 30 MPG car that is 50% US sourced and 20% Mexico sourced. The cost is $18K and there is 4/5 star protection. The interior needs a major upgrade, and this is a rather basic car. Emissions are 70% below average.
Fusion - Sales are up 5% for this car that gets 24 MPG and has a cost of $25-30K. Emissions are average. This car is 55% from the US and 40% from Mexico. This is a very stylish car that has a nice interior.

TOYOTA
Yaris - Sales are up 27% for this car that gets 32 MPG and has a 4 star crash rating with a economical price of $16K. There is not enough leg room and a strange dashboard. The interior needs a major upgrade.

MINI (owned by BMW)
Mini - Sales are up 31% for this unique car. The price is $22-24K. It is a strange looking car with a strange dashboard. There is very little leg room and the car is small with a retro interior. The interior needs some major improvement. Doors are also unusual on this vehicle.

GM:

CHEVROLET
Malibu - Sales are up 37% for this sporty car with an excellent interior and retro concept. The car gets 28 MPG and costs $28K. There is 4/5 star crash protection and has 80% US content. This car emits 70% less pollution than average. There is a hybrid version that gets 30 MPG and costs $26K.
Cobalt - Sales are up 3% for this sporty looking car with a decent interior. Mileage is 31 MPG with 4/5 star crash rating. Content is 71% US and 16% Mexico. The cost is only $16K and smog emission levels are excellent.

PONTIAC
G6 - Sales are up 6% for this car with 21 MPG and 80% US content. There is 4/5 star safety and a price of $31-33K. The interior is sporty, but needs some improvement. Smog emissions are 30% above average.

SATURN
Vue - Sales are flat for this crossover that gets 22 MPG and has a retro interior. There is 4/5 star safety and the price is $24-29K. There is 35% US and 46% Mexico content. Smog emissions are 35% above average. There is a hybrid version that costs 28K and gets 29 MPG.

Read the full analyst report on GM.

Read the full analyst report on F.

Read the full analyst report on TM.

Read the full analyst report on HMC.

Read the full analyst report on DAI.

Read the full analyst report on NSANY.