Quote:
Originally Posted by SamIam
Len,
Am I to understand that now the T1 suppliers have their hands out?
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Looks that way. What did I post earlier, and I was called Chicken Little for posting it:
The way the automakers, GM, Ford, Chrysler, Toyota, Nissan, Honda, Mercedes, and BMW, rely on the network of suppliers, and the way most of those supplier are disproportionately dependent on GM, Ford, and Chrysler (or as I've been calling them, here in Detroit, The Three Stooges),
auto manufacturing in North America is a house of cards, built on a foundation of sand. Pull a card or let the economic tide shift the sand around a little, and it all comes crashing down.
The naysayers will be seeing more and more of this coming from the suppliers, and will be seeing even some of the transplants react with extreme caution, if not panic in a few cases. Keep in mind, Delphi is still in Chapter 11, and hasn't been able to line up the financing to borrow enough to exit bankruptcy, since about March of this year - BEFORE the credit crunch. GM, Toyota, and Ford get a lot of electronics (and Ford's upcoming Fusion Hybrid gets it's electric motor) from Delphi, and GM pays Delphi a lot of money every month, money that gets automatically tied up in a Chapter 11 filing. Most of those parts, you don't find a new supplier for them in a month or two. Your supplier tanks, you in BIG trouble.