Linamar expects to make market gains in downturn

* Sees up to 60 pct of auto parts suppliers at risk

* Working with GM to reduce its receivables exposure

* Shares up 96 percent since May 4

By John McCrank

GUELPH, Ontario, May 12 (Reuters) - Linamar Corp (LNR.TO) expects to win substantial new business over the coming months as its competitors succumb to the downturn in the automotive industry and the supply base consolidates, the auto parts maker said on Tuesday.

Chief Executive Linda Hasenfratz said the company's strong balance sheet will help it ride out the downturn and that Linamar will pick up market share as a result.

"We can expect to see significant supplier liquidation in the next coming months, which will result, for those left standing, like Linamar, with significant takeover opportunities," she said at the company's annual meeting.

Hasenfratz said that 30 percent of suppliers to the North American auto industry are already in extreme financial distress and are "imminently bankrupt." Another 30 percent will be in the same position by the end of the year if they don't get some sort of financial assistance.