Early Snow Storms in Eastern U.S. to Drive Collision-Parts Demand

Taipei, Nov. 11, 2011 (CENS)--The La Nina is bringing early snow storms to eastern U.S., as well as stronger demand for aftermarket (AM) auto parts, according to industry sources.

Huge areas of the northeastern U.S. have been hit by a rare October snow storm, dumping up to 30cm of snow to impact an estimated 60 million people, as well as causing car accidents that are driving demand for replacement parts as bumpers, lamps, grilles, radiators, mirrors, hoods, fenders etc.

Some suppliers of collision parts in Taiwan say that major snowfalls in Europe and the U.S. typically occur in the second half of November or even after December; while global-warming has delayed collision-parts distributors' order placing in the past few years.

The unseasonal snow storms in North America have stirred distributors to ask about order placement, and expectation that Taiwanese collision-parts suppliers will be busy in the fourth quarter.

Also the greenback has risen against the NT dollar to around 1-to-30 to further sharpen competitiveness of Taiwan-made auto parts overseas, suggesting a recovery in such exports from the island after two to three years of flat growth, said the parts makers.