Rebound of the US Supplier Industry?

2012

Roland Berger Strategy Consultants has released a new study that captures the pulse of the US automotive supplier industry. The study provides an analysis of the current health and performance of US suppliers relative to the global industry and focuses on one of the most relevant issues facing US suppliers: undervaluation despite record profits and healthy balance sheets.

After going through a rough patch where US light vehicle sales dropped 35% in 2 years, recovery has been steady and much faster than expected at the beginning of 2012. The current seasonally adjusted annual rate (SAAR) forecast is expecting 14.9 million light vehicles to be sold in 2012. US suppliers have benefited, with revenues up 42% since 2005 and EBIT margins improving to record levels. "Balance sheets are stronger than ever and are in better shape than their European, Japanese and Chinese counterparts", says Thomas F. Wendt, Partner with Roland Berger Strategy Consultants. "However, this has not translated into market returns".