Many Car-Parts Makers Could Go Under


Even if Detroit's car makers get an interim bailout, their suppliers face a wave of business failures in coming months that are expected to disrupt the flow of parts to U.S. assembly lines run by both U.S. and foreign makers.

The disruptions won't be as severe or widespread as they might be in the face of a sudden bankruptcy by a Detroit auto maker, but industry experts say they are inevitable. Many suppliers were financially weak going into this crisis and they now face an extended period of extremely slow sales.

"It would have been a tsunami under a bankruptcy," said Craig Fitzgerald, an auto analyst at accounting and consulting firm Plante & Moran PLLC in Southfield, Mich. "Now it's just a 20-foot tidal wave." Mr. Fitzgerald predicted occasional parts shortages and resulting U.S. plant shutdowns, including at foreign-owned plants.

Read the full article at The Wall Street Journal

Date published: Dec 09, 2008


Syndicate content