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Auto suppliers ‘healthier than anticipated
Auto suppliers ‘healthier than anticipated,’ analyst says
Posted Tuesday, Aug 25, 2009, 1:09 pm in Employee News
Auto parts makers are coping with the downturn better than anticipated, and a major supply chain disruption is looking less-likely, according to a Wall Street analyst, Automotive News reported.
“We have increased confidence that a major supplier disruption appears to be unlikely given that working capital concerns may be overstated and suppliers may be healthier than anticipated,” Brett Hoselton, senior automotive analyst with KeyBanc Capital Markets Inc., said in an investors note yesterday following a recent meeting with the Original Equipment Suppliers Association in Troy, Mich.
Even with the Chapter 11 bankruptcies of General Motors, then-Chrysler LLC and large tier-one suppliers like Lear Corp., Visteon Corp. and Hayes-Lemmerz International Inc., the flow of parts has not yet been significantly disrupted, the publication said. Key companies in bankruptcy have been able to pursue reorganization via financing from banks or the automakers themselves, rather than be forced to liquidate because of a lack in working capital, Hoselton said. (Automotive News)
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Rick
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