Carmaker crisis hits suppliers (S&P: Negative scenario for a dozen companies)

[Bozita]

Source: Detroit News

Friday, November 14, 2008
Carmaker crisis hits suppliers
S&P: Negative scenario for a dozen companies
Alisa Priddle / The Detroit News


The fallout from the financial crisis in the auto industry is reverberating down the parts supply chain of Detroit's Big Three, with more cost cutting, job losses, bankruptcies and liquidations expected.

Massive restructuring by suppliers in recent years has not been enough to ward off poor third-quarter financial results and keep Wall Street happy -- and that was before the credit crisis threatened the future of the Big Three.

A number of North American suppliers had their credit ratings placed on CreditWatch with negative implications Thursday by Standard & Poor's Ratings Services because of their ties to General Motors Corp., Ford Motor Co. and Chrysler LLC.

S&P singled out ArvinMeritor Inc., BorgWarner Inc., Cooper-Standard Automotive Inc., Federal-Mogul Corp., Goodyear Tire & Rubber Co., Hayes Lemmerz International Inc., Johnson Controls Inc., Lear Corp., MetoKote Corp., Shiloh Industries Inc., Stoneridge Inc., Tenneco Inc. and Visteon Corp. for their significant exposure to GM, Ford and Chrysler.

Read more: http://www.detnews.com/apps/pbcs.dll/article?AID=/20081114/AUTO01/811140359

[susanna]

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