Supplier Comments

  • “I believe Ford's supplier volumes will decline as Ford sales continue to decline – preferred supplier or not.”
  • “Ford doesn't have a clue about quality or how to deal with suppliers.”
  • “Business down with major automotive companies – GM, Ford, Toyota.”
  • “I have just accepted a position in the utility industry.”
  • “Gas prices are impacting sales, but the economy is strong.”
  • “Auto makers are putting the screws to suppliers.”
  • “Detroit has a lot of cleanup to do in their own systems first.”
  • “There is no reason to offer advancements to customers that are not willing to pay for them.”
  • “They have decided to use technologically inferior products to reduce cost.”
  • “To meet OEM prices, a supplier must be innovative, even if the OEM does not recognize this.”
  • “We're not willing to spend resources developing new technology, only to have the Big Three unilaterally ‘off-shore’ our ideas.”
  • “We are on the cutting edge of technology and have leverage to price accordingly.”
  • “We continue to offer our best technology. However, continued price-cut demands will eventually force us out of OEM market.”
  • “We still bid on business where we will lose money, to seek favor with auto makers. Saying no is difficult for management who succeeded saying ‘yes.’”

OEM Comments

  • “After we get technology, it's shopped around after a year or less.”
  • “Auto makers have been very aggressive, I agree. But suppliers are offering the farm to compete.”
  • “Big Three needs to stop bullying suppliers.”
  • “I work for a Japanese auto maker here in the U.S. We are asking our suppliers to give better pricing on all components across the board.”
  • “To get price cuts, the purchasing leadership is buying inferior parts.”
  • “In the next 10 years, there may not be a Big Three.”

OEM Respondents Vent About Their Companies

  • “Face it. Bad management and unions have ruined the Big Three.”
  • “CEO Bill Ford did a very poor job.”
  • “We are always hiring to prevent a lull in experience, but as a whole we are downsizing.”
  • “GM: poor leadership. Pay bonuses for loss of business? That’s like feeding my dog after he bites me!”
  • “It can't get much worse.”
  • “Massive layoffs; no raise in wages in over two years; costs pushed down to employees; more hours expected to be worked for 40 hours’ pay.”
  • “Price of steel and gas and health-care costs are making us less profitable.”
  • “The cleaning out of non-productive employees had to be done.”
  • “Watch out – We've got the eye of the tiger.”
  • “I’m concerned about pensions being around in 15-plus years.”
  • “We (GM) are doing fine outside the U.S. & Canada. We are struggling to make a profit with the vehicles we manufacture in North America for the North American market.”

tmurphy@wardsauto.com