FederalMogul sees North American 08 production decline
By David Bailey
DETROIT (Reuters) - Federal-Mogul Corp FEMO.PK expects a broad global and customer base to reduce the impact from expected significant North American auto industry production and sales declines in 2008, Chief Executive Jose Maria Alapont said on Monday.
Alapont said the auto parts marker expected a tough year for production and sales in North America for the industry, with significant percentage declines from an estimated 15.1 million vehicle industry production in 2007.
“Production looks like it could be weaker than in 2007, whether that goes to high-single digits or middle-single digits is a big question,” Alapont told Reuters in an interview.
Federal-Mogul would face a corresponding impact from declines, but is not dependent on any one customer or region for revenue with no more than 7 percent of its business is with any one customer, Alapont said.
U.S.-based General Motors Corp (GM.N: Quote, Profile, Research), Ford Motor Co (F.N: Quote, Profile, Research) and Chrysler LLC comprise 13 percent of revenue overall and less than 9 percent in North America, he said in an interview at the North American International Auto Show.
The Southfield, Michigan-based company has annual revenue of about $6.3 billion, with about 52 percent from North America and 48 percent from Europe, Asia-Pacific and other regions.
About 60 percent of its revenue comes from business with vehicle makers and 40 percent from the replacement market.
Federal-Mogul emerged from bankruptcy in late December after six years in court protection and would consider acquisitions in areas that could add to its core business, which includes 20 leading brands or new technology, he said. Continued…
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