Comments on: Ford’s Mulally comments on supplier health

By: spg900

spg900 — Thu, 18 Jun 2009 17:43:31 +0000

Turbo Mo – correct me if I’m wrong but didn’t the Bush admin start handing out the people’s money. The Obama admin could have chosen to stop it (and be crucified by half the population for allowing jobs to be lost ) or continue the bailouts. You guessed it, the other half of the population (which includes you ) is now crucifying him. Please feel free to outline your recovery plan !

By: carstuff

carstuff — Thu, 18 Jun 2009 11:29:26 +0000

One item not mentioned is that the OEM’s pay their Tier 1′s and the tier 1′s pay their Tier 2′s and right on down the line. With the Tier 1′s close to bankruptcy THEY may be the ones not passing the money from the OEMs down.

By: carstuff

carstuff — Thu, 18 Jun 2009 11:06:03 +0000

??? come on guys what misinformation:

Suppliers are 90% wholesale? Borat most of the automotive suppliers that are going under do not have any wholesale business or perhaps I do not get what you mean by wholesale. Warranty parts are probably more profitable but not much and there is not that much business there anymore. The aftermarket chinese companies take care of the bulk of that. Sure there are a lot of tier 1′s like Delphi/Visteon/JCI for one of a kind parts like interior trim plates but the suppliers that are going under are smaller like Metaldyne.

http://www.metaldyne.com/metaldyne/

Also if the OEM’s paid their bills on time would help but when all OEM’s are shutting plants down for weeks/months at a time and sales are down 40-50% few suppliers competing at cut rate pricing with China are not going to make it w/o some cash.

By: leftwingagenda

leftwingagenda — Thu, 18 Jun 2009 02:19:34 +0000

typical obama administration behavior? your characterization of what’s happening is completely wrong…if you’re going to attack obama, at least do it with facts…there was a post just yesterday about gm giving 250 million to delphi, where did that 250 mil come from? oh yeah, the bailout! the suppliers aren’t going to fail with no aid, you are just flat out wrong…

there will be a contraction of suppliers, though, because if you haven’t noticed, the market for cars as shrunk and the reduction in suppliers is inevitable…you can’t produce parts at the same rate yet sell millions fewer cars per year…

all i ask of you obama bashers is to make sense, please try harder…

By: johnnycanuck

johnnycanuck — Thu, 18 Jun 2009 01:56:27 +0000

Just keep those Mustang suppliers happy. We need our fix of ‘Stang baby! Need it bad!

By: KarLoveBoy88

KarLoveBoy88 — Thu, 18 Jun 2009 00:55:03 +0000

Turbo Mo and Borat, you both are right. Yes were hurting with funding the ailing car companies and the Big 3 should pay their suppliers on time. But what everyone is forgetting is that the bailouts were for the companies to stay afloat and pay their suppliers off. But what they lost sight and bought new, “updated” versions of their current private jets to all fly to the same spot in Washington to lure more money. Now that these companies new infrastructure going into effect, we should see some positive outcome and surviving suppliers.

By: Borat

Borat — Thu, 18 Jun 2009 00:21:28 +0000

If Ford (GM & Chrysler) would pay on time for the goods they received, suppliers would be in excellent shape. Their product sold on retail market is extremely profitable. It is the wholesale side (which accounts for 90%) that is money loosing proposition.

By: mayer_ray_nagin

mayer_ray_nagin — Thu, 18 Jun 2009 00:14:47 +0000

Most suppliers are non union and therefore they contribute relatively little to the democrats. That’s what it is about.

By: Turbo Mo

Turbo Mo — Wed, 17 Jun 2009 22:30:58 +0000

Typical Obama administration behavior. Dump all the people’s money into bankrupt companies, and let the critical auto suppliers fail with no aid. Don’t they realize that this hurts everyone??