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S&P Concerned About Auto Suppliers Seeking Broader Chapter 11 Strategies Mar 06 Product Image

S&P Concerned About Auto Suppliers Seeking Broader Chapter 11 Strategies Mar 06

  • Published: March 2006
  • Standard & Poors

FEATURED COMPANIES

  • Citation Corp.
  • Collins & Aikman Corp.
  • Exide Technologies
  • Ford Motor Co.
  • Lear Corp.
  • Metaldyne LLC
  • MORE

Abstract
As bankruptcy becomes increasingly attractive for some U.S. auto suppliers as a means of reducing costs, Standard & Poor's Ratings Services is concerned that such filings may become strategic options rather than last resorts. Bankruptcy has some strategic attraction for certain participants in the challenged U.S. auto supply sector, as it could allow suppliers to effectively reduce all manner of costs as well as gain back a more balanced pricing relationship with automaker customers. If such gambits by those suppliers in bankruptcy are successful, the attraction to other suppliers of filing for Chapter 11 may rise significantly in some cases. One specific concern is that such filings could be used by a supplier to abrogate its labor agreements. This may...

Companies mentioned in this report are:
- Collins & Aikman Corp.
- Ford Motor Co.
- Motors Liquidation Co. (fka General Motors Corp.)
- Metaldyne LLC
- Exide Technologies
- Lear Corp.
- Hayes Lemmerz International Inc.
- Citation Corp.
- American Axle & Manufacturing Holdings Inc.
- Dura Automotive Systems Inc.
- Visteon Corp.
- Plastech Engineered Products Inc.
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- Collins & Aikman Corp.
- Ford Motor Co.
- Motors Liquidation Co. (fka General Motors Corp.)
- Metaldyne LLC
- Exide Technologies
- Lear Corp.
- Hayes Lemmerz International Inc.
- Citation Corp.
- American Axle & Manufacturing Holdings Inc.
- Dura Automotive Systems Inc.
- Visteon Corp.
- Plastech Engineered Products Inc.
- Cooper-Standard Automotive Inc.

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