Auto Supplier Winners & Losers: American Axle

Updated from 1:15 p.m. ET

NEW YORK -- Shares of several large auto parts suppliers tumbled Friday, after the Senate failed to pass a $14 billion bailout package for U.S. automakers and the government issued more gloomy economic data.

Late Thursday, the rescue package, which had been approved in the House, died in the Senate where members complained about the United Auto Workers refusing demands that their wages come into parity with those of Toyota's(TM Quote) and Honda's(HMC Quote) U.S. workers.

The White House said Friday it will consider using the $700 billion Wall Street bailout fund to prevent the U.S. auto industry from collapsing, and the Treasury Department said it "will stand ready to prevent an imminent failure until Congress reconvenes."

Then early Friday, the Commerce Department said retail sales fell by 1.8% in November, its fifth straight monthly decline -- a period of weakness never before seen on the government's retail sales records. The weakness was led by a 2.8% drop in auto sales.

Deutsche Bank analyst Rod Lache cut his ratings, from "Hold" to "Sell," on shares of Lear(LEA Quote), American Axle & Manufacturing(AXL Quote), TRW(TRW Quote) and Magna(MGA Quote).

He also warned that "Lear, American Axle, and TRW will face risk of covenant violation in early 2009." Officials for American Axle and Lear were not immediately available to respond, and a TRW spokesman said the company had no response to Lache's warning.

Citi Investment Research analyst Itay Michaeli said Friday in a client note he was disappointed BorgWarner(BWA Quote) cut its 2008 earnings-per-share guidance late Thursday to $1.85 to $1.95 from $2.25 to $2.35. In response, Michaeli reduced his forecast for this year to $1.89 from $2.30. Analysts polled by Thomson Reuters expect, on average, a profit of $2.25 for 2008.