After General Motors emergence from bankruptcy last week, worries may seem to have subsided as hope rises for people that the automaker is on its way to recovery, contingent on huge support from both Americans and foreigners. However, the US is turning its attention next to the auto parts makers, whose failure could disrupt the quick recovery of the automakers, such as GM and Chrysler, both of which sought Chapter 11 and have emerged. Lear, maker of car seats, has already went ahead with a Chapter 11 filing last week.
Other struggling parts makers include American Axle & Manufacturing Holdings Inc., Accuride Corp., TRW Automotive Holdings Corp., Tenneco Inc. and Cooper Tire & Rubber Co.
From the WSJ:
The health of parts makers is crucial to the administration’s efforts to remake GM and Chrysler. One supplier often provides parts to a variety of car companies. Industry-wide auto sales are tracking about 9.7 million light vehicles a year, down from 13.2 million last year and a peak of 17 million cars and trucks earlier in the decade. Parts makers’ revenue dropped about 4.3% last year after rising steadily to around $145 billion in 2007.
Read the rest HERE.