Continental sees more tie-ups in car parts sector
BERLIN, Nov 5 (Reuters) - German tyremaker and car parts group Continental AG (CONG.DE) expects the slump in the car industry to result in more takeovers among automotive-parts suppliers, the company's chief executive said on Wednesday.
"I expect further consolidation in the industry," Karl-Thomas Neumann said at an industry convention in Berlin.
Continental, which in August struck a deal with bearings maker Schaeffler that will see the privately held company acquire just below 50 percent of Continental's shares, recently unveiled plans to curtail output and put investments on hold.
The industry's consolidation process, which had led to between 200 and 300 tie-ups in the last few years, was far from over, Neumann said.
Only few suppliers are capable of keeping up with the pace of globalisation and of setting up new sites in emerging markets, following their customers who are eager to tap demand for cars in new growth regions, the CEO said.
The financial crisis could fuel the consolidation process further, he added. (Reporting by Jan Schwartz, writing by Ludwig Burger; Editing by Hans Peters)
