HispanicBusiness

A new report providing a "state of the nation" review of the auto parts industry shows that "despite tumultuous conditions, there is definite opportunity for a select number of firms to emerge leaner, stronger and better able to compete than ever before."

Theodore Kim, Managing Director of The Smart Cube, a global independent research firm that issued the report, said: "The auto parts industry faces the most difficult operating environment in history with softening revenues and widespread job losses in large part due to huge exposure to the Big 3."

Companies' revenues have seen significant drops, Smart Cube said, and 20 percent of jobs were lost in the last year, bringing total employment to 561,000, plunging from the 1 million workers employed in the last decade. The report said 30 U.S. auto parts suppliers filed for bankruptcy within the last 2 years, and five more have been announced this year.

However, Smart Cube said there are several companies poised to succeed among the changes in the industry.

The report identified the strongest auto parts companies in the current market as: Borg Warner Inc., Dorman Products Inc., Genuine Parts Co., Johnson Controls Inc. and WABCO Holdings Inc.

"As this hurricane passes, there are clear opportunities and a handful of winners who will undoubtedly emerge – not only the surviving firms, but also well-positioned advisory firms, value investors, hedge funds, banks and restructuring consultants willing to do their homework," Kim said.

The restructuring of the U.S. auto industry as a whole could result in the rebuilding and restrengthening of the auto parts segment, the report said, "resulting in a smaller number of leaner, financially stronger, more cost-efficient (and far more profitable) players emerging from the crisis."

To read the full report, go to The Smart Cube.