The next round of auto supplier roulette appears to be ready for a new set of players. The last round occurred in the 1990s as suppliers looked to acquire complementary parts to build modules or gain size to get economies of scale.
However, while the ferocity of the frenzy may feel the same as last time, the end goal is a little different. In the past suppliers were looking to be the sole source for modules, but this time around there seems to be a focus on shedding what each company deems to be unprofitable businesses.
One area that seems to be seeing a shift is automotive interiors. Newer suppliers seem to be ready to make a go of a business that more established players are ready to escape. (more…)