What a difference a week makes.
The combination of a market bounce, favorable news from GM, and reports of Ford planning to offer a $2.95 Billion in TALF-related bonds have sent shares of Ford and GM surging in the last week.
GM has jumped 39.6 %
Ford is up 35.6%
It has some investors wondering if they should move money into auto stocks, or if the group is still a risky bet given everything happening in the depressed auto industry. I've bounced that question off a few analysts and almost everyone says the recent news on autos is encouraging, but the overall picture is still muddy.
Among the biggest questions is how President Obama's Auto Task Force plans to keep the auto parts suppliers from collapsing. There are indications we could get some sense of plans for helping suppliers by the end of this week. Once that's done, the attention will turn to GM and Chrysler.
Perhaps the most encouraging news in the last week came from the man leading the auto task force. Steven Rattner told the Detroit Free Press the task force is looking to restructure the industry outside of bankruptcy. Essentially taking the bankruptcy risk off the table and adding fuel that gives auto investors reason to be optimistic.
- Check This Out On CNBC.com: Saving GM: Inside A Crisis
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