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China's auto suppliers most profitable in 2009

By Hu Yang (chinadaily.com.cn)
Updated: 2010-04-16 17:38
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Given the backdrop of the shrinking global auto market, China's auto parts manufacturers realized an operating margin of 9 percent in 2009, almost double the number in 2008, due to strong auto sales in the country, versus just 5 percent for American suppliers in the fourth quarter, according to a survey by business-advisory firm AlixPartners.

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The survey, released Wednesday, ranked Chinese auto suppliers as the most profitable in the world. Survey respondents said that margins will improve further this year, to about 10 percent, AlixPartners said.

However, Chinese auto suppliers were worried about higher prices for commodities such as iron ore, the Shanghai Securities News reported, citing Ivo Naumann, managing director of AlixPartners' Shanghai office.

The survey also found that technology improvement is an important topic for most suppliers in China. About 65 percent of the executives surveyed said they recognize need for better technology, while 50 percent said they plan to recruit international experts in help with the technology transfer.