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The environment has been favorable for the auto parts (original equipment) industry and it had a record year in 1999. Cost-cutting by the automobile industry in the US presents a challenge, and there seems to be little enthusiasm for these stocks in the equity markets. These stocks are not timely for the year 2000, but several individual issues have appeal for investors.

The automobile parts (original equipment) industry had a good year in 1999 with strong demand, due to high automobile productivity, and good earnings, and the year 2000 is forecast to be favorable, also. Manufacturers, however, need to focus on market share in the future as US and international automobile sales will not be as high in recent years. Investors will find some good selections in this industry for the next three to five years, but these stocks are not timely for the year 2000.

Stocks of the original equipment automobile parts industry have not been able to sustain their spring rally in 1999 in spite of good earnings due to record sales in the automobile industry. The auto parts industry should also benefit from outsourcing by automobile makers and labor problems in the future should also abate. These stocks are expected to perform with the market in 1999 and the year 2000 and also have good price potential for the next three to five years.

Economic conditions for the auto parts (original equipment) industry have been almost ideal during the first six months of 1999 with high automobile sales and earnings for the 2nd qtr are in the rise due to strong demand. The industry has been under consolidation pressure and market share has become important as sales and profits for most auto parts manufactures comes from the mature Western European and North American markets. There are few timely stocks in this industry in 1999, but several have good total return potential for investors for the next three to five years.

The original equipment automobile parts industry had a good year in 1998 and is also expected to perform well in 1999, but at a more modest level. The industry has also become more competitive as there are fewer, but larger, companies, and consolidation is also forcing the industry to expand product lines and geographic reach. There are few timely stocks in this industry, but several have attractive potential for the next three-to-five years.

DETROIT - Dissident shareholders lost their fight to force the board of Simpson Industries Inc. to consider the sale of the company because of its lagging share price. A proposal [...]

AUTO SUPPLIERS Simpson Industries investor wants parts maker to be sold A Simpson Industries Inc. (Nasdaq: SMPS) investor is asking shareholders of the world's largest maker of products to limit [...]

Salomon Brothers Inc. automobile industry analyst Jack Kirnan downgraded recommendations on the stocks of Automotive Industries Holdings Inc., Simpson Industries Inc., Tower Automotive Inc., A.O. Smith Automotive Products Co. and Hayes Wheels International Inc. from buy to hold. Kirnan pointed to increasing raw material prices, new-product delays and exposure to troubled General Motors Corp. as reasons for his scaling back. Kirnan's move reflects the instability of the supplier industry despite good overall sales.