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Green Ride for Investors?

By Mike Spector and Terry Kosdrosky

GM, Ford Motor Co. and Chrysler LLC each have announced plans to put diesel engines in their light-duty pickups, and most auto companies are looking at diesel for passenger cars.

Honeywell International Inc., like BorgWarner, stands to see its turbocharger business expand amid interest in diesel. Other companies that could benefit from Washington's new green streak include Tenneco Inc. and Modine Manufacturing Co., which make emissions-reducing exhaust equipment. Another potential beneficiary is Johnson Controls Inc., which builds batteries for gasoline-electric hybrids.

Some companies that are exposed to less-efficient vehicles could stand to benefit in the long term if they meet the changing demands of auto makers. Navistar International Corp., for example, supplies diesel engines for Ford's heavy-duty trucks, but could transfer that expertise to smaller cars as auto makers introduce more-efficient diesel engines in that segment -- a potential benefit that Wall Street hasn't priced in yet, analysts said. The same goes for Cummins Inc., which builds diesel engines for Chrysler's heavy-duty Dodge trucks. Click here to read the full story.