U.S. auto suppliers will face the same set of stresses in 2008 that have caused severe financial and operational deterioration over the past several years, including the bankruptcies of a number of Tier 1 suppliers, declining volumes from the Detroit Three, continuing pricedowns (forced price reductions by original equipment manufacturers [OEMs]), high commodity prices, excess cost-disadvantaged U.S. capacity and resulting restructuring actions, and higher interest costs associated with higher debt levels.
