With the consumer good's industry getting increasingly competitive, Japan's well known consumer brands like Sony are putting a bigger emphasis on supplying parts to automakers for the chance of higher profit margins.
It took Delphi four years to exit bankruptcy, but after a major restructuring and staggering losses, the parts maker is once again ready to sell shares to the public. The Detroit News reports that Delphi will offer a $550-million stock offering later this month. The move comes after Delphi announced in May of 2011 that it would seek an Initial Public Offering, though the $550 million sum is nearly half of the originally announced $1 billion IPO.
As one of the world's largest suppliers of automotive parts, Visteon is a highly valuable company with hands in many areas of vehicle production. Visteon produces components for automotive interiors, climate control systems, lighting and electronics. The company is run by CEO Donald Stebbins, and the man in charge has hinted that Visteon could move to push its divisions into separate entities. The Tier 1 supplier has struggled in recent years, declaring Chapter 11 bankruptcy in early 2009, only
The Japanese island of Kyushu has become known as "Car Island" due to the influx of not only assembly plants, but also plants run by various car parts suppliers of the Japanese domestic manufacturers. In fact, 30 percent of all suppliers shacked up on Kyushu are affiliated with Toyota.
Fitch Ratings announced yesterday that it has cut its ratings on Ford even further into junk status. The ratings firm cites the obvious elephant in the room as justification: the potential for parts suppliers to cause a disruption in manufacturing and the even larger threat of union strikes is growing by the day.
- Our favorite reveals from the LA Auto Show
- You can probably get a great deal on a new Fiat
- 2016 Holiday Gift Guide
- Is it time to buy a Pontiac Aztek?
- Fastest-depreciating cars in the United States
- Most and least efficient car companies