Clean Car Stocks

Description:

A new report by Merril Lynch and the World Resources Institute (WRI), entitled “Alternatives for the clean car evolution”, provides good background on regulatory and other forces driving the trend toward cleaner cars, as well as 3 ways to play this trend.

The authors discuss regulatory developments around biofuels/ethanol, customer demand trends, and finally take a superficial look at the exposure of the Big Three, Toyota, Honda and Nissan to clean powertrain technologies (i.e. fuel cells, biofuels/ethanol, diesel, hybrid). What's their conclusion? The shift away from conventional automotive technologies to the 'clean car' will occur gradually, bearing more resemblance to an evolution than to a revolution. Here are 3 stocks that the authors believe are good plays on the “clean car evolution”.

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