You may not know who Wilber Ross is but let me tell you he is a billionaire. He became a billionaire by buying distressed companies, performs huge cost cutting and then resells them after the sector and company have rebounded. He knows the value of a company and seems to know when cost cutting will improve a business. When Ross moves into a sector it draws attention because of his past history. What is he saying now? He is saying the automotive parts industry has to change. The days of the auto manufacturing only taking the lowest bid are over. Also over are the days when the automotive manufacturers demand a bigger discount every year. Something has to give and in his mind it will the US auto industry. This is going to be a devastating year because if auto sales dip just 4-5% it is going to cause major financial problems for the parts suppliers. He called this year “the perfect storm” for part makers. Ross thinks consolidation will be the key to survival. He is buying auto part manufacturing and combining them in efforts to cut cost. It also sounds like he is trying to get the industry to raise prices as well. For more on the story go to the Reuters article.