Q: Any other ideas along this theme? A: The other U.S. name we have emphasized is Tenneco [TEN]. They make, among other things, exhaust systems. In the next few years, regulations for emission standards will be tightened for cars and trucks and commercial vehicles. Every time the emission standards are ratcheted up additional content is required. Tenneco has a strong market position. There are only three major players globally in the market. Tenneco has done a very good job of winning business and the new standards will drive pretty significant revenue growth over the next five years.

Q: Who's best positioned to benefit from that theme? A: BorgWarner [BWA] is an auto supplier that sells turbochargers and engine and drive-line components. The bulk of the products in its portfolio help improve fuel economy.

Q: What about Johnson Controls? A: Johnson [JCI] is one of our favorites. The story there is more on the non-automotive side. A couple of years ago, Johnson acquired York, a maker of heating and air-conditioning equipment, and combined it with its own business of heating and air-conditioning controls. They are taking share and growing. York had been a chronic underperformer and that's changing. There is margin growth. There is revenue growth and earnings growth, and that's not fully appreciated in the stock price. Johnson has a great management team and very positive cash flows.

Q: What about non-U.S. car makers? A: On the European auto side, our analysts recommended Daimler [DAI.Germany] because roughly 70% of its revenue comes from diesel.

Q: How do you feel about Magna International at this point? A: Magna [MGA] is also interesting. We rate it neutral and at the current price it is not one we are recommending. But if you take a longer view it might be something to look at as it relates to growth in Russia.