Automobile Parts Manufacturing
- ID: 1052618
- April 2016
- Region: United States
- 10 pages
- First Research
Brief Excerpt from Industry Overview Chapter:
Companies in this industry manufacture automobile parts, including transmission and power train components, engines and engine parts, body parts and trim, electronics, braking systems, and steering and suspension components. Major companies include BorgWarner, Dana, Lear, Tenneco, TRW Automotive, Visteon, and the automotive division of Johnson Controls (all based in in the US), along with Robert Bosch and Continental (Germany); Delphi Automotive PLC (UK), DENSO and Aisin Seiki (Japan); Faurecia (France); and Magna International (Canada).
Economic expansion in emerging markets is expected to drive healthy growth in the auto manufacturing sector over the next several years, which should bolster demand for auto parts.
The US auto parts manufacturing industry consists of about 4,400 companies with combined annual revenue of about $240 billion.
Demand for auto parts is driven by new car sales, which are strongly affected by interest rates, and by the replacement market. Company profitability depends partly on the difficulty of manufacturing products and partly on demand volume, since many costs are fixed. Small companies can compete successfully by focusing on a small number of products or some highly technical ones. The US industry is concentrated: the 50 largest companies account for more than half of industry revenue.
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