Note: All US based, unless otherwise stated NB. Returns are all denominated in USD.
Global supplier overview
Global automotive parts suppliers delivered fourth quarter, one- and three-year returns of -6.0%, 7.0% and 37.6%, respectively. The industry continues to drive growth in emerging markets and countries with low cost labor environments, primarily Asia. This is particularly true for North American suppliers attempting to reduce their dependence on the struggling North American automotive market. Many suppliers are achieving this growth through strategic alliances or acquisitions. Although these efforts have benefited suppliers through a more diversified revenue base and favorable currency rates, many suppliers see these benefits being offset by rising commodity prices. Heavy restructuring efforts continue for many large North American suppliers, among others.
Furthermore, Japanese based suppliers continue to outperform the market as their rising commodity price challenges are overshadowed by higher production volumes, as Honda and Toyota have increased global market share.
