Car Parts companies have been among the worst hit businesses during the recent recession. Here we look at some of the winners and losers.
Ford Part maker and former subsidiary Visteon went into chapter 11 bankruptcy on May 29th. This followed the closure of the UK based car parts factories, which according to Visteons' wikipedia page were never profitable, and were closed as a result of the USA operation being unable to support them financially. At the time of the administration, Visteon listed total assets of $4.58bn (£2.88bn) and total debts of $5.32bn. Ford has opted to help Visteon through the bankruptcy with debtor in possession finanacing, which should give Visteon a clean slate, albeit under strict financial conditions.
There is a meeting to discuss a £250 million pound deficit in the Visteon UK workers' pension scheme, which is being held on July 8th. Further details are available here.
GM and Ford Parts Maker Lear Corp filed for bankruptcy on July 2nd 2009. Lear is a supplier of seating, electrical, flooring, interior trim, instrument panels, etc., to OEM auto companies, with General Motors and Ford representing 40% of its customer base, and has been hit especially hard during the downturn, as indeed GM has with its own banruptcy proceedings.
Car Parts manufacturer Meridian Automotive Systems is closing a central Indiana factory for an indefinite period, putting 295 people out of work.
Last year, Lucas Car Parts went out of business, after a takeover by Euro Car Parts was due to occur, eith Euro Car Parts pulling out at the last minute.
Car parts maker Magna International has reached an agreement in principle to rescue GM Europe, owner of Opel and Vauxhall, reports say.
The agreement was reached with General Motors, but is subject to the approval of the German government, which will be providing funding to the new owner.
Magna appear to be one of the few winners during a period of great uncertainty in the car parts manufacturing industry.
