Respondents to the 29th Annual Ward’s Supplier Survey were asked, “Are you fearful your company may declare bankruptcy or go out of business in the near future?”

Supplier Comments

Dana has declared bankruptcy and is in danger of going out of business.”

“If we cave in to the ridiculous pricing pressures and perverse purchasing practices (from General Motors Corp.) and don’t grow strategically with Asian OEMs, then, yes my company is at risk. It has gotten to the point that we don’t dare offer up or share our leading-edge technology because the customer (GM) will only shop it to the lowest bidder.”

“My company is going private, and I believe my division will be sold to pay for the purchase.”

“Our company has defined ‘success’ as being out of business by the end of 2008.”

“Recently Ford stated to our senior management that all new business must be quoted at the Mexican labor rates, regardless of the location of the plant producing the parts.”

“We are in the process of closing – not because of lower overseas costs, but because our company wasted money in many, many ways.”

“We are presently moving operations to India and China.”

“We have announced closing of this plant and moving the manufacturing operation to Mexico.”

“Yes, we are an ACH plant (Automotive Components Holdings, owned by Ford, formerly Visteon) and have been told we will close by the end of 2008.”

Auto Maker Comments

“Fear doesn’t enter into business decisions. Bankruptcy is a business tool. If bankruptcy is best for Ford Motor Co., then that is the course we should pursue. Many companies have used bankruptcy to allow them to shed the practices that made them uncompetitive.”

“I was fearful in 2006, but GM seems strong now.”

“Management is hopelessly inept.”