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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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From: peppe51	2/2/2005 9:17:38 AM
	of 116555

Auto parts industry in trouble...... Reuters Tower Automotive Files for Bankruptcy Wednesday February 2, 8:47 am ET NEW YORK (Reuters) - Tower Automotive Inc. (NYSE:TWR - News), a large supplier of truck frames and body structures that has been struggling with a cash shortage, on Wednesday filed for bankruptcy protection from creditors. The Chapter 11 filing, which also covers about two dozen affiliates, was filed with the U.S. Bankruptcy Court for the Southern District of New York. "The supplier part of the industry is in trouble, especially companies with a fair amount of debt," said David Cole, chairman of the Center for Automotive Research about the sector's recent woes. "It's an extremely challenging period in part because they are getting hit from two sides: lower price pressures from customers and higher commodity prices." Several U.S. auto parts suppliers have struggled, with some seeking bankruptcy picture, amid production cuts by automakers as sales at the Big Three flag, rising prices for steel and other raw materials, and higher health and pension costs. Tower listed $787.9 million of assets and $1.31 billion of debts in its filing. Among its largest investors are Fidelity Management Research and Co. and Morgan Stanley Investment Management Inc., the filing shows.

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