- “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?
- “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. and 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.
- “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.”
- “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.”