Auto suppliers see salvation in interest-rate, tax reductions.(Brief Article)

Crain's Detroit Business, March, 2001 by Strong, Michael

The three largest automotive suppliers hope the Federal Reserve Board's interest-rate reductions and President Bush's proposed tax cut will help automakers sell excess inventory and increase production in the second half of the year. Sales this year are strong by most historical standards, but they compare poorly with record sales in the first half of last year.

Demand was strong last summer and early last fall, so automakers increased production accordingly. Sales fell late last year, leaving a glut of unsold cars and trucks. Reducing production now means temporary layoffs for some companies, but the moves by the Fed and the possible tax cut are expected to keep the economy moving. ``The second half should get back to normal,'' said Susan Skerker,...

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