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Car parts makers see lower margin

(chinadaily.com.cn)
Updated: 2007-07-23 17:27

Special coverage: Auto Shanghai 2007
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More expensive raw materials are squeezing listed car parts makers' gross margins while 22 out of the 24 auto parts manufacturers are making more net profits.

Technology is the major factor leading to high gross margins for some car parts makers. Guangdong Greatoo Molds and Longxi Bearing respectively saw a gross margin of 45.47 percent and 44.65 percent, followed by Guihang Automotive Components at 39.08 percent, Fuyao Glass Industry Group with 36.57 percent, and Huaxiang Group at 33.87 percent.

However, five products from Zhejiang Wanfeng Auto Wheel, Dongan Power, Changchun FAW-Sihuan Automobile Co and Yueyang Hengli Air-cooling Equipment saw gross margins of less than 10 percent due to the rise in raw material costs, with the lowest of -3.12 percent from Yueyang Hengli Air-cooling Equipment.

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The full text is available in the July Issue ofAutoChina.