Saturday, February 03, 2007

US Auto Suppliers Looking for Asian Auto Makers

These are not great time for US auto suppliers as US auto makers are not dong so well in the US market. Asian auto makers like Toyota are making inroads in the auto industry. So, US auto suppliers have to think of the future and try to get in touch with Asian auto makers.

Houston Chronicle reported:

Executives for each of the suppliers said they will continue to work to expand their customer base overseas and reduce their exposure to the domestic automakers.

American Axle & Manufacturing Holdings Inc. said Friday it swung to a fourth-quarter loss, while ArvinMeritor Inc. said Tuesday its fiscal first-quarter profit tumbled 79 percent.

Both companies blamed the results on restructuring costs and lower production levels, prompted by decreased demand from the Detroit-based automakers, which cut their own production during the quarter.

Meanwhile, Tenneco Inc. said Tuesday that amid "tough North American market conditions," its fourth-quarter profit nearly doubled, but its adjusted earnings also missed analysts' expectations.

Executives for the companies said one of their focuses in 2007 will be to expand their customer base further outside of the former "Big Three" Detroit automakers, making them less vulnerable to potential market share losses and production fluctuations.

So, the time has come for US auto suppliers to go abroad and make some strategic alliances in Asia and Europe.