Automotive parts suppliers face greater challenges


Two reports show the prospects for the global automotive parts industry remain challenging as the industry struggles with uncertain production numbers, rising raw materials prices, and increased global competition.

Being an automotive parts supplier, either a Tier 1 or Tier 2, hasn't been a fun ride over the past few years. While 2010 was considered a "good" year by most in the industry, challenges continue to plague this industry segment. A recent report from SupplierBusiness, an IHS Global Insight business, said that ratings agency Moody's has revised its outlook for North American Suppliers to "stable" from "positive" on "expectations that global light-vehicle demand will soften through 2012 and also that rising costs will constrain profit margins."
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