Delphi Mexico sees car part sales stable in 2004

MEXICO CITY, Jan 21 (Reuters) - U.S. auto parts maker Delphi Corp. said on Wednesday it expects sales at its Mexican unit to be around $9.0 billion this year, similar to the level in 2003.

Delphi spokeswoman Mary McCahon told Reuters the company was confident that in 2004 there would be a rebound in demand for autoparts from its clients, driven by higher demand for cars in the U.S. market.

"There is optimism. Forecasts from our clients indicate a stronger market for this year," she said.

Delphi, one of the two largest parts makers in the world, has 55 plants in Mexico where one-third of its car parts are produced.

The company is cutting jobs worldwide and is under continuous pressure from carmakers to cut prices as vehicle prices decline.

Although Delphi has said it is always evaluating the viability of moving production to more competitive countries, McCahon said the company's intention was to stay in Mexico and that business conditions here in 2003 improved due to tax conditions.