Will global consolidation continue to boost the auto sector?

While the auto sector has been declining for a number of years, car suppliers are beginning to benefit from global consolidation, says Nicolas Walewski, manager of Alken Asset Management's European Opportunities and Absolute Return Europe funds

The impact of the falling oil price has been the most important area for investors to focus on in recent times. This major swing of value from producers to consumers will benefit numerous companies across a number of sectors - including technology, telecoms and retail. Another beneficiary is the European auto sector, which remains one of our highest conviction areas today. But it is not just the falling oil price that has boosted the attractiveness of the auto sector. While the sector has been going sideways for more than a year, the future is brightening for a number of these stocks....