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(Transportation-News.com, March 05, 2013 ) Northampton, U.K -- A gradual but clear recovery, along with pent-up demand for new cars across the country, and a push for more fuel-efficient components are all factors in the strength of the country's largest suppliers of car parts.
The fortunes of Magna International Inc, Linamar Corporation, and Martinrea International Inc. are all tightly tied to the Detroit Three, as well as the health of the U.S. Vehicle market. The general outlook for the sector is nothing if not optimistic.
Auto sales within the southern neighbor, which is still Canada's most significant partner, rose 13.5% in 2012. In 2013, the U.S. Sales will likely reach 15.3 million vehicles, estimates Polka Southfield, Michigan-based research firm.
Polk noted that low interest rates, healthier housing markets, and an influx of new vehicle types and architecture, are the major reasons for the large automaker's growth. Customers are now eagerly trading in their worn-out vehicles after putting off purchases for quite some time.
"They're facing the best decade in their history," said Dennis DesRosiers, an industry consultant in Richmond Hill, Ontario. "No later than two years from now, we're going to have a record level of production in North America, and if you produce record numbers of vehicles, you're going to have record (parts) supply."
There is a steady recovery for Ford Motor, General Motors, and Fiat SpA's Chrysler since the recession-based slump. As part of the Detroit Three's restructuring, suppliers are listings are being reduced by half, which gives survivors of the cutbacks are larger piece of the pie, according to BMO. That means that for those that remain, the outlook is rather good.
We think this is a good entry point for investors, in terms of valuation," he said. "They're at the low end of the range of where they're going to trade. For this year, for 2013, we think they're all going to have good earnings growth, so the stocks are going to go up."
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Source: EmailWire.Com 
Source: EmailWire.com
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