Morgan Stanley issues warning on auto loans

|By:, SA News Editor

TRW Automotive Holdings (TRW +0.8%), BorgWarner (BWA +0.5%) and Delphi Automotive (DLPH +1.8%) look more attractive to Morgan Stanley's Adam Jonas than General Motors (GM -0.1%) and Ford (F +0.7%) on concerns that auto loan credit will tighten.

"Subprime as a percentage of new car sales has approached pre-crisis peaks and leasing is setting new records." warns the analyst in his note to clients.

The trio of auto parts makers could have more global upside potential than the Detroit automakers if the U.S. auto industry hits some speed bumps.