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Some Auto Suppliers May Liquidate, Investor Ross Says

Some auto-parts companies may be forced out of business as auto sales fall in 2008, billionaire investor Wilbur Ross said.“I believe that the result will be the liquidation of one or more of the large, walking-wounded suppliers and that plant closures will finally reduce the excess capacity,” Ross said in a speech in Detroit.

Ross didn’t name a supplier. He said U.S. sales of cars and light trucks may fall as much as “three-quarters of a million” vehicles this year. Such sales fell by 407,612 vehicles to 16.1 million in 2007. “We also believe we are slipping into a consumer-led recession,” Ross said.

Ross, through his International Automotive Components Group North America LLC, has been accumulating holdings in the auto- parts sector, including purchasing units from Collins & Aikman Corp., which is liquidating in bankruptcy, and Lear Corp.

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