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Volkswagen could be making these stocks a bargain

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More car trouble ahead?

Automobile stocks slumped this week, following news that Volkswagen rigged emissions tests for its cars.

Despite a bounce after Friday's opening bell, the S&P 500 industry group of automakers and suppliers had fallen almost 4 percent in one week, making these stocks one of the worst performing groups in the index.

Ford and GM fell about 4 and 3.5 percent respectively in the week, but the week's most troubled company in the group is auto parts manufacturer BorgWarner, which is down 8 percent.

However, one portfolio manager says the tumble in auto stocks could have created some attractive buying opportunities.

Read MoreVW faces 'about the worst situation': Ex-GM exec

Erin Gibbs, chief equity investment officer of S&P Capital IQ, noted that many automaker stocks are trading at an extreme discount to their average price target on the Street.

"I actually see auto manufacturers as being an overreaction, they're getting hit because they're part of that industry," Gibbs said Thursday on CNBC's "Trading Nation. " "Ford, GM, Harley Davidson, they all look really good. "

However, Gibbs, who oversees $12 billion in assets for S&P Capital, is less optimistic about the auto parts suppliers, which include BorgWarner, Delphi Automotive and Johnson Controls.

"[For] BorgWarner, I do think this [selloff] is justified," Gibbs said. "Break it down a little further and you can get some good buys," Gibbs said.

Read More As Volkswagen loses, other automakers could benefit

The charts appear to echo those views.

Ari Wald, head of technical analysis at Oppenheimer, said BorgWarner has been showing signs of trouble even before this week. The stock has tumbled more than 28 percent this year.

"The stock has certainly broken down, but there were some actually glaring signs of distribution heading into this breakdown, so we would continue to stay away," Wald said Thursday on "Trading Nation." "Now it is indeed oversold, but there are no signs of a base here."

Wald said the next level of support for BorgWarner would come in around $30, another 22 percent drop from where the stock closed Thursday.

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