US auto parts maker Federal-Mogul Corp has $1.3 billion available for acquisitions that could include companies with technology pertaining to electric cars and fuel economy, Chief Executive Jose Maria Alapont said on July 25.
The parts maker would also look to strengthen its presence in emissions environmental safety and add to its growing non-automotive commercial and industrial areas, Alapont told Reuters in an interview.
Federal-Mogul, which emerged from bankruptcy protection late last year, generates more than 60 percent of its revenue outside North America. It expects the US market to be challenging in the second half of the year and sees the risk of slowdown spreading to the European market.
"The second part of the year is going to be very challenging for the North American market and most probably as well for the European market," Alapont said. Federal-Mogul - which makes pistons, spark plugs, windshield wiper blades, brake pads and other automotive products - has a broad base of customers and no one customer accounts for more than 6 percent of revenue. During the second quarter, Europe accounted for 48 percent of Federal-Mogul's sales, US and Canada for 39 percent, and the rest of the world for 13 percent.
Alapont said he aims to balance the company's revenue between the three regions long-term.
In wide-ranging remarks, Alapont also said he does not see any moderation in high commodity prices in the near future. "We think that is a situation that is going to stay for a while," he said, adding that Federal-Mogul is dealing with the increased cost by hedging, cost reductions on other areas and design improvement.