Boris Ladwig, The Republic City Editor
The bankruptcy of Delphi Corp. has lowered stocks of fellow auto parts suppliers sharply, including ArvinMeritor.
Though ArvinMeritor said in a statement that it could not yet predict the impact of Delphi’s bankruptcy, investors reacted unfavorably toward auto industry stocks.
Since Delphi filed for bankruptcy on Saturday, its shares have fallen nearly 68 percent to 36 cents, according to Yahoo! Finance.
Shares of ArvinMeritor have fallen 8.2 percent to $14.16, and Visteon Corp. lost 12.8 percent, closing at $7.86 on Monday.
Shares of Delphi’s former parent company, General Motors Corp., fell nearly 10 percent on Monday, but regained 3.7 percent on Tuesday.
“It’s too early to speculate on the impact of Delphi’s announcement to ArvinMeritor,” the company said in a statement on Tuesday.
“However, ArvinMeritor is committed to improving shareholder return by reshaping the light vehicle systems business, capitalizing on the strengths of our commercial vehicle segment, tapping emissions growth areas and diversifying our company in terms of customer, product and geography.”
ArvinMeritor announced Monday that it has sold its off-highway brake business to a North Carolina company for about $39 million as part of an ongoing effort to cut costs and narrow its focus.
In October 2003, the company sold the former central tubing plant near Walesboro to AK Steel and in December, it sold the 17th Street plant to Cleveland-based private investors.
About a year ago, the company also announced it plans to sell its Light Vehicle Aftermarket business, the smallest of its three units by sales.
© 2005 The Republic