Is there room for suppliers to make further price cuts while being profitable?

Supplier Comments

  • “Room for price cuts is available if we win and keep inclusive rights to manufacture the program involved.”

  • “Take a lesson from the Toyota Production System and remove waste from the process. Work smarter, not harder.”

  • “To be complacent and not search for a better way to improve profitability is sure death. Whatever happened to doing it right the first time?”

  • “Depends on how you define profitable. Steel pricing is killing us!”

  • “I wouldn’t say that being an automotive parts supplier is wildly profitable.”

  • “If more cuts are made in pricing, we might as well close the doors.”

  • “Just this week one of our sub-suppliers went bankrupt and closed. This will happen more and more.”

  • “Why should they have to? I don’t see the price of cars coming down.”

  • “You now pay more for a T-shirt than the Big Three pays for an airbag inflator – a life-saving device.”

OEM Comments

  • “One can always reduce costs through improvement activities.”

  • “Who cares? Supplier profitability should not be an auto maker’s concern.”

  • Toyota is kicking the Big Three’s butt on cost, quality and reliability. This has to change now, today. Big Three must team up with good suppliers, not just create constant bidding, gouging and bad relationships. There is no trust, just fear and manipulation.”