Recession may not be the big risk for auto stocks

Don’t worry too much about a recession hitting Detroit. The real concern should be standardization of supply.

The U.S. new-car market is stuck in a low but lucrative gear as manufacturers struggle to produce. General Motors warned on Friday that its second-quarter profit would fall short of expectations due to parts shortages reducing shipments to dealers. First-half sales in the market were about 6.8 million, according to Wards Intelligence, down 17% from the same period last year.