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With the takeover bid of the Chrysler unit of Daimler-Chrysler (DCX) by Cerberus Capital, a private investment firm with deep roots in the Republican party (see my blogs), today (5/14/2007), what is the best strategy? Buy DCX? Buy the remaining US-based based auto makers - Ford (F) or General Motors (GM)? An interesting US based play is Spartan Motors (SPAR), a Michigan based specialty truck manufacturer, which has run up nicely recently.

Or look overseas. Jim Cramer likes Toyota (TM). It's pulled back from its 52 week high of 138.00 and is now at 119. Perhaps their big Japanese competitor Honda (HMC)? Personally,I'd go farther afield - to China and India. That's where the customer growth is. For China, check out Brilliance China Automotive (CBA).

My favorite, which I own personally, is India's Tata Motors (TTM). It's growth has been astronomical, especially after it introduced a $2,500 car specifically for the Indian market. It's not only a great company in an expanding market, it's cheap, with a P/E of 13 and PEG of 0.69. It's pulled back because of problems with the Indian stock market a few months ago but it appears to be rebounding.

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