With a very good 2013 sales record and 2014 forecasted to reach a seven-year high, car sales in the US are also driving up the shipments from the world’s largest parts makers.
After last year sales of passenger cars and light trucks reached 15.6 million units, according to Credit Suisse auto sales in the US could grow by 2.6 % to 16 million vehicles.
This is great news for some of the world’s biggest car parts makers, located in Japan – not only they deliver more auto components to the US, their profit is also driven up by the weaker yen. Hitachi, for example, citing its automotive-parts business sales in North America, raised its profit forecast for the year.
The same happens at Denso, the world’s biggest diversified auto-parts maker by sales and at Aisin Seiki, the world’s third-largest auto-parts maker – they both supply components to GM, Ford, Fiat SpA, besides local automakers like Toyota and Honda.
“It still makes sense for some car parts to be made at the mother factory in Japan for economies of scale,” said Masahiro Akita, an analyst with Credit Suisse Group AG in Tokyo. “When parts run short, high-valued added ones can be flown by plane to satisfy extra demand.”
As sales in the US surged last year the most since 2007, the country, which is the biggest importer of car parts from Japan, was the motor drive beneath the Asian’s country rising motorcar parts exports.