|SIC Codes:||2396 3292 3714 3694 3647 3592 3585 3519 3465|
|NAICS Codes:||336310 336320 336390 336330 336350 336360 336370 336340|
Companies in this industry manufacture automobile parts, including transmission and power train components, engines and engine parts, body parts and trim, electronics, braking systems, and steering and suspension components. Major companies include Dana, Delphi, Lear, Meritor, Visteon, and the automotive division of Johnson Controls (all in the US); Robert Bosch and Continental (Germany); DENSO and Aisin Seiki (Japan); Faurecia (France); and Magna International (Canada).
Demand for auto parts is driven by new car sales, which are strongly affected by interest rates, and by the replacement market. Company profitability depends partly on the difficulty of manufacturing products and partly on demand volume, since many costs are fixed. Small companies can compete successfully by focusing on a small number of products or some highly technical ones.
Major product categories are transmission and power train components (20 percent of industry revenue); engines and engine parts (15 percent); and metal stamping of body parts and trim (15 percent). Other products include electrical and electronic equipment (10 percent); seating and interior trim (10 percent); brake systems (5 percent); and steering and suspension components (5 percent), as well as air conditioning systems and carburetors, pistons, and valves. Parts manufacturing plants are often located close to the assembly plants of the car companies, usually within 100 miles.Buy Now