PERSPECTIVE: Taiwan Feeling U.S. Automotive Slowdown

John Wolz

Editor�s Note: The following is presented by Taiwan-based Fastener World magazine as part of a news column exchange with FIN.

The demand for Taiwan screws and nuts is down, due to the downturn in the North American automotive industry. Also DaimlerChrysler is asking for a 15% discount from screw and nut factories. Many traders and manufacturers are reporting a overstocking situation.
Therefore, the president of Taiwan Industrial Fasteners Institute, John Wu, has advised Taiwan fastener manufacturers to limit production and hold prices until the North American market rebounds hopefully in May and June this year.
Wu just returned from America, where he visited eight local fastener traders, distributors and manufacturers. He found that their screw and nut inventories are rising and they hope Taiwan factories will not ask for orders soon, will cut production 70% and � most important � do not cut prices to compete.
Wu found that though the automotive industry has slowed, other industries, such as housing, are fine. However, automotive accounts for 40% of Taiwan�s screw and nut market, and in January and again in February cut orders 25%. In addition, Daimler-Chrysler�s financial difficulties led to its request for a 15% discount from fastener industries on February. It is expected that DaimlerChrysler situation will level out later this year.
Ford, General Motors and Daimler-Chrysler, the three major North American automakers, produced about 18 million vehicles last year, and forecasts call for 17.5 million in 2001.

French/Taiwanese Venture � Taiwan Yieh United reported that French company, Usinor, has taken an interest in the production ability, and, upon Taiwan entering the WTO, Usinor hopes to use Taiwan�s resources as a stepping stone into China.
Taiwan Yieh president Yih Shon Lin, has gone to France to make arrangements for such a venture.

Taiwan Investment in China Up � A Taiwan strategy research organization reported that Taiwanese investment in mainland China reached US$27 billion last year, an increase of 108% over 1999.
The Taiwan government has ended the requirement for Taiwanese to forfeit their Taiwanese identity upon becoming a resident of China, and the government is now accepting both citizen identities.
Mainland China will open up its goods exchange market. Currently there are about 20 Taiwanese traders building business in central China. \

�2001 FastenerNews.com