Half Of US Auto Suppliers Face Bankruptcy

[Purveyor]

Source: Reuters

* More than 50 pct of top suppliers may go bankrupt in '09

* At least 1 million jobs could be lost - study

* 35 pct of supply base bankrupt in 'soft-landing' - study

* 70 pct plus in bankruptcy under 'pessimistic scenario'

By David Bailey

DETROIT, March 19 (Reuters) - More than half of the top U.S. auto parts suppliers could file for bankruptcy protection in 2009 with at least one million job losses, according to a study by global consultants A.T. Kearney.

Those suppliers, which ship parts directly to automakers, are pressured from above by production cuts by the automakers and from below by increasingly fragile companies that supply them with components, the study found.

The survey encompassed 60 top North American auto parts suppliers, but did not name any of the suppliers. It was compiled through interviews with senior executives at suppliers in the United States.

The U.S. government has pledged up to $5 billion to aid financially stressed auto parts makers that are crucial to General Motors Corp (GM.N) and Chrysler.

Read more: http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN1950817020090319

[SammyWinstonJack]

1. .

:argh:

[Prometheus Bound]

2. Sort of like what was expected to happen when the oil ran out.

The moneymen sure fucked up the world.

[Psephos]

3. They had some help from the politicians, too n/t

[sarcasmo]

4. It would be a 100percent if GM files Bankruptcy.