The following is an in-depth story from Automotive News tracking the ramp-up in the automotive supply sector in response to the industry’s healthy sales. To view the entire article click here.
Thanks to a rush of orders from automakers, suppliers are cranking up production in North America.
Feeling more confident about the next few years, suppliers are hiring and adding machinery and production lines, and even building plants. The extreme caution that followed the Great Recession of 2008 and 2009 is dissipating.
Don Walker, CEO of Magna International Inc., says his company is getting bigger orders from Chrysler Group, Ford Motor Co. and General Motors.
“We are flat-out at our plants in North America on some products,” Walker told reporters last week at the Geneva auto show.
BMW, Volkswagen and Mercedes-Benz also are boosting orders, he said. “The export demand for those brands is much higher than planned, and we are trying to meet demand.”
According to a January survey of 109 suppliers by the Original Equipment Suppliers Association, 64% of respondents said they were optimistic about their outlook for the next 12 months, up from only 27% in a November survey.
To view the entire article click here.