The domestic automotive business has been beaten and torn by foreign competition for several years now, forcing many auto-parts producers, such as Tower Automotive Inc. and
Delphi Corp. (OTC:
DPHIQ) into bankruptcy proceedings.
A growing number of auto-part manufacturers are leaving the U.S. automobile industry altogether, divesting auto-related businesses and diversifying into other, more profitable industries.
The Wall Street Journal highlighted the latest companies [subscription required] trying to make the switch to stay alive:
- SPX Corp (NYSE: SPW), a North Carolina auto manufacturer that once earned 90% of its revenue from auto-related businesses, now earns less than 3% from auto-related businesses after multiple divestitures and acquisitions. SPX Corp is now an infrastructure-related products and service manufacturer for the global power market.
- Pittsburgh-based glass and coatings manufacturer PPG Industries Inc (NYSE: PPG) has put its windshield business up for sale. The company instead will rely on its high-tech coatings business and optical & specialty material segments that offer long-term growth potential.
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MOST NOTEWORTHY: First Financial, TriZetto and General Electric were today's noteworthy downgrades:
Why do we have a weak dollar?
Holiday hiring slow for retailers
Closing Bell: What sell-off? (AIG, ABK, EPR, MBI, JAVA, ORCL, ERTS)
