A dealer’s parts department is the last rung on the wholesale parts ladder. The economic crisis that began in 2008 deeply affected the global auto parts wholesaling business. As the demand for new cars and trucks seems to be on the rebound, auto parts suppliers are seeing increased sales and revenue, according to a new study by IBISWorld.
The worldwide recession caused auto sales to plummet. A number of parts suppliers were on shaky financial ground prior to 2008, and the economic downturn pushed them into bankruptcy. This caused significant changes in the relationships between suppliers and OEMs. Last year’s earthquake in Japan put even more pressure on suppliers. This situation caused supply shortages, affecting dealers.
The IBISWorld study indicates the industry is making a comeback, albeit with fewer parts suppliers. Magna International, DENSO Corporation, Robert Bosch GmbH, and Delphi Corporation are the largest players. The survivors, however, emerged stronger and more innovative.