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ITW: Sales to Foreign Automakers Grow 20%

Jason Sandefur

Illinois Tool Works Inc. expects sales to non-U.S. automakers in North America to grow about 20% in 2007, Reuters News reports.
“The growth rate was 20% last year … and will be close to 20% again this year,” CEO David Speer said, referring to foreign automakers Toyota, Honda and Nissan.
Sales to the auto industry account for 12% of revenue at ITW.
Speer expects revenue from the North American auto industry to remain stable at about 7% in 2007, despite drastic production cuts from Detroit’s Big Three. Sales to GM, Chrysler and Ford account for about 80% 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.
According to Reuters, high gas prices have caused consumers to move away from oversized vehicles, which are the most profitable for U.S. automakers. Asian automakers have not relied heavily on SUVs and trucks for sales.
However, U.S. automakers are reportedly growing overseas. Speer said ITW is expanding its auto parts unit in China and India, two rapidly growing auto markets. Web: itw.com �2007 FastenerNews.com