Chinese automotive suppliers are likely to be buyers of North American parts companies as the industry faces 12 to 18 more months of depressed volumes and tight credit, says Dietmar Ostermann, a director with the management consultancy PRTM in Addison, Texas.
Chinese suppliers such as Guangzhou Automobile Group Component Co. and Fawer, the parts-making affiliate of China FAW Group Corp., will see opportunities to buy North American and European companies, Ostermann says. China's government is urging large suppliers to buy smaller rivals at home and to expand abroad, he says.
Guangzhou is a major player in interiors, a segment in North America that is ripe for consolidation, Ostermann says. Already this year, BeijingWest Industries Co. Ltd. bought assets of Delphi Corp.'s brake and suspension businesses for about $100 million. The sale occurred before Delphi left Chapter 11 this month.