Analyst Gary Gordon of UBS Securities LLC said in a recent report that he recommends investors underweight U.S. auto stocks because they have chronic problems. A small decline in demand for autos would likely result in continued losses at DaimlerChrysler AG's Chrysler unit and drive General Motors Corp. and Ford Motor Co. "to the brink of profitability," he said. He believes the fundamental problems are lacklustre brands, falling market share, pricing pressures and legacy fixed costs. "A modest decline in automotive demand would probably expose the companies, which are barely profitable now, to significant losses," he said.