Another Downturn For The Automotive Community

Car Parts Dealers Hurting

Visteon Corporation, one of the biggest suppliers of automotive parts to Ford Motor Company and Hyundai Motors, claims they are bankrupt. The supplier of lighting systems, electronics, and climate control systems was once owned by the Ford group, but split in 2000 and hasn’t made a profit since.

Visteon tried cutting workers to 4 days a week and salaries by 20%, but are still operating in the red. Layoffs are sure to follow, but how many and where is yet to be determined. Bankruptcy documents indicate that Ford Motor Company, the sturdiest of all domestic auto makers, will provide the needed capital to operate, while restructuring is being done. Wall Street traders were quick to notice that Ford’s stock dropped 1.1% because of the news. G.M. stock on the other hand rose over 12 percent. Welcome news for the bow-tie company, indeed.

The Dana Corporation has also suffered this week. The drive axle supplier for Chrysler Jeep and Ford vehicles laid off 115 employees at their axle plant in Fort Wayne, In. Company executives are confident that their business will survive the auto recession. Dana Spicer is also a supplier of drive line parts, heavy truck differentials, and transmissions for class 8 heavy duty tractors.  This should help sustain the company in the lean times. They posted a 157 million dollar loss in the first quarter of this year.

With Chrysler already in bankruptcy, and G.M. on their heels, no one is sure what the outcome of all of this will be. Many programs and ideas are being implemented, and the industry is sure to survive. The fall out from the auto crisis is staggering, but necessary, for the industry to survive. Harsh words, yes, but also necessary in this day and age.

Chrysler Engine