More Supplier Survey Stories Can you foresee a time when your company no longer does business with the Big Three?

Supplier Comments

  • “If there is a God.”

  • “Already have!”

  • “We are close to that point. Why deal with purchasing departments that only look at low cost?
  • “Because they shop technology, which is very unethical.”

  • “Going into the aftermarket business.”

  • “Aftermarket is much more profitable.”

Can you foresee a time when some suppliers refuse to do business with the Big Three?

OEM Comments

  • “Already some suppliers are turning down business.”

  • “Big Three and suppliers need to work as a team. Not a 'this is my price, take it or leave it' situation.”

  • “Difficult to obtain payment, and relationships are lost.”

  • “Forced reductions alone will drive suppliers to companies who see them as partners.”

  • “GM in particular does not know how to partner with suppliers for collaborative wins.”

  • “If there's no profit in supplying parts, then why produce them?”

  • “Japanese companies may control who gets the majority of business.”

  • “The Big 3 vacillate too much. Honda and Toyota make a plan and stick to it. Suppliers are more comfortable in that situation.”

  • “There's always Japan, Germany and Korea.”

  • “Why invest in someone heading for a crash? Would you?”

Respondents talk about impact of OEM pressure to cut component prices.

Supplier Comments

  • “Not only is being a supplier to a Tier 1 only marginally lucrative, a quality issue can result in a cost recovery that can financially ruin a small supplier and will completely negate any profit any supplier expected to make.”

  • “All the fat on the supplier side is gone.”

  • “It's a race to the bottom.”

  • “Look at the financial performance of Tier 1 and 2 suppliers. They are not able to make many more price cuts without risking bankruptcy.”

  • “Maybe the Big Three should actually try and fix some of their own internal systems and stop 'bleeding the empty stone.'"
  • “There is room for additional efficiencies, but the current supplier situation is not sustainable.”

  • “We are at the bottom right now. We will have to move business to lower labor countries in the next 10 years – if we survive until then.”

  • “The Big Three (soon to be Small 3) have so much baggage with union contracts. They will all fail. I hope I live to see it.”

OEM Comments

  • “Cost cuts hurt our quality, but we (design engineers) are forced to do the cost cutting. We design a part that is robust and thoroughly tested, but then we are told to cut the cost. That is what lowers our quality.”

  • “Even after years of price cutting by the Big 3, there is still a lot of fat and waste in the supply chain.”

  • “I have seen declines in responsiveness, support and service with price cuts, but not actual product quality reductions.”

  • “Some suppliers are still posting record profits.”

  • “Suppliers continue to get more efficient or at least should strive to. I think that the quality of goods and services from outsourced jobs is inferior to the in-sourced jobs. This will bite the company in the long run.”

  • “Work sent overseas came back all wrong and needed rework. Cheap price should not be the criterion.”