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Ward's Staff
July 26, 2006
3 Min Read
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.”
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