Indian auto suppliers eye US companies

[OhioChick]

Source: Reuters

9 Apr, 2008, 2135 hrs IST, REUTERS

NEW YORK: Asian auto parts suppliers hoping to gain a foothold in the North American market are eyeing US companies as acquisition targets, an emerging trend expected to pick up speed in the coming years. The acquisition interest from Asian suppliers -- particularly from India and China -- comes as US suppliers struggle to cope with rising commodity prices coupled with demands from automakers to lower their price on parts.

Many of the US auto suppliers have either been in bankruptcy or have restructured heavily. And tighter credit markets are not boding well for many of them to exit Chapter 11 protection any time soon. "We are certainly seeing interest in those companies from all parts of the globe and in particular from Chinese and Indian investors and strategics," said Steve Brady, a partner with Grant Thornton LLP's transaction advisory services.

"It's going to be a positive thing for the industry," Brady said. "The Asian companies will bring in investment capital and they will be operation-focused. It's a good thing for a supplier base that has been struggling." Lear Corp, ArvinMeritor and Visteon Corp have all been through significant restructuring of their operations.

Federal Mogul and Dana Holding Corp recently exited Chapter 11 protection. Tower Automotive sold itself to Cerberus Capital Management in its effort to exit bankruptcy. Collins and Aikman was liquidated in 2007, after going through bankruptcy in 2007.


Read more: http://economictimes.indiatimes.com/Indian_auto_suppliers_eye_US_companies/articleshow/2938966.cms

[acmavm]

1. Why not? Even if its made in America it's made by a foreign-owned

company most likely.

[TommyO]

5. How long do you think the US plants would remain open

after being purchased by an Indian or Chinese company?

My guess would be very long at all.

[darue]

8. they'd just be swooping in to take ownership of patents and trademarks

would be my expectation. no need for them to run any production lines here.

We're all going to be homeless at this rate. what a joke.

[OhioChick]

9. Bingo! n/t

[saigon68]

10. "It's going to be a positive thing for the industry," Brady said.

Ass Clowns

[madrchsod]

2. we are Argentina

[samsingh]

3. the impact of a low $

[Lost4words]

4. aren't most cars from India high occupancy! 4 inside 12 on top?

8643

[htuttle]

6. Indian car company Tata just bought Jaguar and Landrover a few weeks ago

The world is changing before our eyes. Pay attention or you won't know who the new boss is in a few years...

[Life Long Dem]

7. Tata Group? Tata is also an outsourcing firm which offshores to India. One of Hillary's lobbyist.

Hillary has ties with Tata. http://www.nriinternet.com/NRIdemocratic/American/A_Z/C/Hillary_Clinton/2007/1_Tata_Jobs_in_NYC.htm