In the driver's seat: despite bumps in the road, auto keeps rolling along. (Auto Parts).

Buyside, December, 2002 by Chensvold, Christian M.

In some ways, the auto industry sits in neutral. As the engine idles, it remains uncertain to industry watchers which sectors will drive growth, build momentum or simply shift into a lower gear. While some believe the Big Three automakers appear as if they've been sideswiped at an intersection, investment opportunities abound in other parts of the space.

First stop: The manufacturers. In an effort to keep sales robust, the Big Three have locked themselves into attractive incentives. General Motors halted its zero percent financing offer on September 1, but reinstated it two weeks later after seeing an immediate decline in sales. In October, Ford made its incentives even more attractive. "You're seeing a price war," says analyst Anthony Pandolfi of Value Line....

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