The world's largest automakers are intertwined in a myriad of ways and they need to watch their competitors in both good times and bad. When talk of a GM bankruptcy was first floated, the discussion of the effects naturally led to GM's suppliers. That discussion then led to what the effects would be on other car companies if a swath of suppliers was suddenly pulled under, and both Ford and Toyota indicated they would be adversely affected by a GM's fall.
Supplier Support Program
Ever heard the saying, "It takes a village to raise a child?" Something similar could be said about the automotive industry, except the village is an assorted and wide-ranging group of auto suppliers and the child is your next new car. Currently, the major automakers only deal directly with Tier 1 suppliers, the big companies that assemble major automotive components into large modules. These modules are created using parts from Tier 2, Tier 3 or even smaller suppliers, and these companies are g
As difficult as it was for General Motors and Chrysler to secure emergency loans from the government, the supplier community that supports the auto industry has found it even more so. Until today. This morning, the Obama administration announced its Supplier Support Program, which creates a $5 billion fund to help keep payments flowing through automakers to the suppliers they work with.