Most of the time we hear reports that automotive suppliers are being squeezed to within an inch of solvency by
automakers that continually demand reduced costs, the rising price of raw materials and the spiraling cost of
healthcare. According to a study by A.T. Kearney of Southfield, MI, however, North American suppliers are performing
better than their foreign counterparts. The study surveyed 69 international suppliers and also found that on average
revenue growth in the sector has been higher than that of the automakers themselves. It can’t be so bad when
DaimlerChrysler
announces that it’s working to improve relations with its suppliers by rewarding the highest-performing ones with
new secure contracts. Meanwhile, Toyota is also setting up a new
department in Michigan to develop
stronger ties with North American suppliers and assist those who score contracts in meeting Toyota’s high standards. It
seems that the suppliers who are complaining the most are
working with either GM or Ford.
Suppliers don't have it that bad
Most of the time we hear reports that automotive suppliers are being squeezed to within an inch of solvency by automakers that continually demand reduced costs, the rising price of raw materials and the spiraling cost of healthcare. According to a study by A.T. Kearney of Southfield, MI, however, North American suppliers are performing better than their foreign counterparts. The study surveyed 69 international suppliers and also found that on average revenue growth in the sector has been higher than that of the automakers themselves. It can’t be so bad when DaimlerChrysler announces that it’s working to improve relations with its suppliers by rewarding the highest-performing ones with new secure contracts. Meanwhile, Toyota is also setting up a new department in Michigan to develop stronger ties with North American suppliers and assist those who score contracts in meeting Toyota’s high standards. It seems that the suppliers who are complaining the most are working with either GM or Ford.