SOUTHFIELD, Mich. (July 11)—Despite record-breaking vehicle production volumes, low automotive supplier stock prices indicate Wall Street brokers assume vehicle sales will tumble nearly a third to only 12 million annually, according to a study by automotive consultancy A.T. Kearney Inc. Suppliers are swamped with operational problems, including debt acquired with new companies, a lack of sustained revenue growth, erratic financial performance and the loss of pricing power to vehicle manufacturers, the study said. "Wall Street already is discounting the stocks because the suppliers will be killed by the next recession," said James Mateyka, vice president of A.T. Kearney´s Global Automotive Practice.
Study links supplier stock prices to anticipated drop in vehicle production
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