33 out of the 36 auto parts stocks with a market cap of over $50M are trading in negative territory today.
The sector could be taking a double hit from China after the government raised the tax on small cars for next year and is said to be fining GM for monopolistic behavior.
Leading decliners in the group are STRATTEC Security (STRT -2.9%), BorgWarner (BWA -2.3%), China Automotive Systems (CAAS -2%), Federal-Mogul Holdings (FDML -1.1%), Modine (MOD -3.2%) and Westport Fuel Systems (WPRT -2.4%).
Westport Fuel Systems (NASDAQ:WPRT) +2.9% premarket after reporting a larger than expected Q3 loss but a 241% Y/Y rise in consolidated revenues to $76M, mainly due to the addition of Fuel Systems revenue as a result of the recent merger.
WPRT also says it has engaged advisors to address debt financing alternatives, including the extension or refinancing of debt coming due in 2017, and it expects the sale of non-core assets to provide additional cash to the balance sheet.
WPRT also says its cost efficiency measures so far have achieved in $16M in annual savings.
Westport Fuel Systems (NASDAQ:WPRT) +4.7% premarket after signing an agreement with Honda Turkey to supply liquefied petroleum gas systems for the new Civic ECO model that will be launched in October 2016.
The Sequent Plug & Drive system is one of the most successful LPG injection systems produced by BRC and sold to several other DOEM and OEM customers worldwide.