German auto parts woes alerts hedge funds

Newswire

By Gerard Wynn

LONDON, Aug 11 (Reuters) - A European autos downturn has prompted German vehicle parts firms to turn to hedge funds for new lending, in a move which will hasten a consolidation of the auto parts industry in Germany, bankers and funds say.

Stagnant sales this year have squeezed margins at some of Europe's biggest carmakers, which are already suffering from unfavourable exchange rates, high raw material prices and a glut in capacity.

And the cascade ...

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