TEXT OF STORY
JEREMY HOBSON: Today Visteon — a car parts maker that was once part of Ford — will start trading at the New York Stock Exchange. Again. The company spent a little more than a year in bankruptcy and emerged in October.
As Marketplace’s Alisa Roth reports Visteon’s return to the NYSE is one more sign that the auto industry is regaining some traction.
ALISA ROTH: During the financial crisis, it seemed like the auto parts business could really collapse. It didn’t. The auto industry is making a comeback. And parts makers are going along for the ride. Kim Korth runs a consulting company called IRN.
KIM KORTH: They reduced so much of their capacity and their cost structure during the downturn that when the industry came back much stronger than people expected, they’re just making a lot of money right now.
It’s similar to what we saw in the auto industry-companies shut plants, laid off workers and cut costs. And now they’re earning more money with lower production. John Henke is at a consultancy called Planning Perspectives. Which works with parts-makers. He says suppliers are doing better. But a lot of them are still being cautious:
JOHN HENKE: They’re just not going to hire. They’re just going to expand production using the same people because we just are too uncertain.
He says they’re worried about getting access to credit. And they’re afraid the car market’s recovery could still stall.
I’m Alisa Roth for Marketplace.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.