Auto suppliers to hit 'devastating' stretch, expert says

Hundreds, and possibly thousands, of auto parts suppliers could be forced out of business within five years as Detroit automakers continue downsizing to bring costs under control, Farmington Hills, Mich., consultant Laurie Harbour-Felas told Bloomberg.

"Some of these suppliers will go into bankruptcy and be bought up in pieces; some will just go away," Harbour-Felas said. "It will be devastating."

The outlook is so bleak for the North American market that parts makers should diversify, an executive of a Japanese parts maker told a conference in Michigan last week.

Car sales are falling because the housing slump has crimped equity available for consumers to tap.