Byline: James B. Treece
Private-equity funds, which have been quiet in the auto industry after being dragged through a mud puddle of bankruptcies, will return as major investors in auto parts suppliers because of trends in credit markets, consulting firm AlixPartners predicts.
The industry's restructuring has left suppliers, as a group, as profitable as they were in 2006 despite industry production volumes that have fallen 35 percent from 2006 levels, says John Hoffecker, head of AlixPartners' global automotive practice.
But the weakest one-quarter of all suppliers as measured by their earnings before interest, taxes, depreciation and amortization face a …
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