500 US Suppliers are at Severe Danger due to Plunge in Auto Production

A restructuring expert stated that huge amount of risk is faced by 500 US auto parts suppliers due to the great fall in the auto production and indecisive prospects for federal aid. Laura Marcero, who is the partner in corporate advisory and restructuring services, added that this situation resulted to a great threat to the economy. She added that in order to make money suppliers struggled so much when all the firms volume was nearly double than today.

As the industry is plunging down to match projections of 12-14 million annual US sales, roughly about 30-40% of all part makers are at danger. 16.4 million was the US average in this decade and seasonally adjusted rate till now is below 10 million. $18.5 billion was requested by Original Equipment Suppliers Association in order to avert further bankruptcies.