In recent years, the recurring troubles of the American Big 3 automakers have been coming to a head. Legacy costs inherited from past manufacturing heydays in the form of costly pension and health care plans for retired employees add up to hundreds of billions of dollars. Unappealing gas-guzzler product lines that are a step behind current auto buying trends aren't driving strong earnings, either; instead, the Big 3 are trying to pad flagging normal sales rates with price incentives. Finally, continuing tussles with the United Auto Workers make it hard to cut costs and downsize to profitability. Meanwhile, Asian and European competitors are rapidly outstripping these traditional auto manufacturing powerhouses.
-American Axle and Manufacturing (AXL) (GM's principal supplier of driveline components) -Superior Industries International (SUP) (mainly NA, alum. wheels) -Dana Corp.(DCNAQ)--axles, driveshafts, brakes, chassis (about 40% from big 3) -Lear Corp (LEA) (about 60% NA) -Cooper tire and rubber co. (CTB) (primarily NA)
-Delphi (*DPHIQ), Visteon (VC)--Ford spinoffs -Magna International Inc. (MGA) (50% apprx NA) -ArvinMeritor (ARM) (50% NA variety of autoparts including drivetrain and components, emissions, braking, suspension, undercarriage systems) -Goodyear (GT) (about/less 50% NA) -Johnson Controls Inc (JCI) (40% North Am) -TRW Automotive Holdings (TRW)--variety of auto parts, 40% big 3 -BorgWarner (30% Big 3)