Parts suppliers, steel face short-term ills
Nov 02, 2007 | 04:20 PM
| Michael Cowden
Job and product cuts at Chrysler LLC will hurt mills and suppliers in the short term, but they might have a silver lining—a more flush customer in the future, analysts and industry observers said Friday.
The cuts at the Auburn Hills, Mich.-automaker will particularly hurt parts suppliers such as Magna International Inc., Aurora, Ontario, they said. And they'll also have an impact on integrated steelmakers that supply the U.S. auto industry, including ArcelorMittal USA, U.S. Steel Corp. and AK Steel Corp.
All of the four models being cut are also built abroad, according to Kim Hill, associate director of the economics and business group of the Center for Automotive Research, Ann Arbor, Mich. Three of the four source parts in the United States, though. "It does have that ripple effect," he said.....
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