Taiwan AM suppliers benefit from US OEM outlet closures

Feb 09, 2009

(Gao Jia-he reporting from Taipei) Affected by the financial crisis facing the three major US carmakers, thousands of OEM outlets are closing down, which benefits Taiwan AM suppliers. According to Keystone, a large North American AM outlet, demand for AM parts will grow by at least 10% this year, with demand gradually strengthening in the second quarter.

According to the US National Automobile Dealers Association (NADA), nearly 1,000 US OEM outlets closed in the second half of last year as a result of the financial crisis facing the three major US carmakers. An estimated 2,000 will close this year, accounting for over one-third of all OEM outlets.

In the fourth quarter last year, Keystone forecast that this year the demand for AM parts in North America should remain the same. However, with the expectation of higher-than-expected OEM outlet closures, there will be an increase in the demand for cheap AM parts. Keystone has revised upwards its growth estimates for the demand for AM parts by at least 10% for this year.

Hota estimates this year's sales to grow 5%

In addition to AM suppliers benefiting, with tier 1 manufacturers placing their orders, Hota, a supplier of OEM transmission parts, has received three orders since last December from agricultural machinery manufacturer John Deere, Belgian manufacturer Punch for planetary gear units and Europe's biggest diesel engine manufacturer Deutz. Hota projects this year's sales to hit $2.4bn, a 5% growth on last year's.


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