By Jui Chakravorty
NEW YORK (Reuters) - Diversified manufacturer Illinois Tool Works Inc. (ITW.N: Quote, Profile, Research, Stock Buzz) expects sales to non-U.S. automakers in North America to grow about 20 percent this year, its chief executive said on Tuesday.
"We've been making very good progress with the new domestics, largely the Asians," Chief Executive David Speer said, speaking at the Reuters Manufacturing Summit in New York.
"The growth rate was 20 percent last year ... and will be close to 20 percent again this year," Speer said, referring to foreign automakers such as Toyota Motor Corp. (7203.T: Quote, Profile, Research, Stock Buzz), Honda Motor Co. Ltd. (7267.T: Quote, Profile, Research, Stock Buzz) and Nissan Motor Co. Ltd. (7201.T: Quote, Profile, Research, Stock Buzz).
Sales to the auto industry account for 12 percent of revenue at ITW, which makes fasteners, plastic parts, chemical fluids, adhesives, coating products and auto replacement parts.
Speer said he expects revenue from the North American auto industry to remain stable at about 7 percent in 2007, even as domestic automakers slash production to cope with billions of dollars in losses, declining sales and sliding market share.
Detroit's Big Three -- General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz), DaimlerChrysler AG's DCXGn.DE Chrysler Group and Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz) -- account for about 80 percent of ITW's North American auto revenue.
"We, like many in the last 18 months, have dealt with a pretty drastic shift from trucks and SUVs in Detroit ... and those vehicles have more content," Speer said.
High gas prices have caused consumers to move away from gas-guzzling vehicles, which are the most profitable for U.S. automakers. Asian automakers, unlike their U.S. rivals, have not relied heavily on SUVs and trucks for sales. Continued...
© Thomson Reuters 2008. All rights reserved.
| Global Environment | Oct 06 - 8, 2008 | Energy |
| Autos II | Sep 30 - Oct 01, 2008 | Hotels/Casinos |
| Restructuring | Sep 22 - 26, 2008 | Financial Services/Exchanges |
| Autos | Sep 15 - 17, 2008 | Autos |
| Russia Investment | Sep 08 - 9, 2008 | Country Summits |
