State of the U.S. Automotive Supplier Industry
The automotive supplier industry -- including captive, independent, OE, and aftermarket suppliers -- represents almost 770,000 jobs in the U.S. and produces approximately $230 billion in shipments. While the automotive supplier industry is in a turbulent period, overall vehicle production schedules remain strong,over a third of the supply base is financially healthy (and a third at least above break-even) and capital through private equity and foreign direct investment channels is available. However, a majorrestructuring has begun and will continue through 2010. Bankruptcies have affected large and small firms. It is likely that the number of total suppliers will continue to consolidate through bankruptcies, companies exiting the sector, and mergers. The suppliers that remain will support the North American production of 16 to 17 million vehicles. This article outlines just a few of the business issues facing the industry. more....