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Article: Automakers steer clear of shaky suppliers; Fear of shutdowns speeds shakeout, creates a world of fewer, bigger players.(NEWS)
- Article from:
- Automotive News
- Article date:
- July 27, 2009
- Author:
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Byline: Robert Sherefkin and David Barkholz
Frightened by the ailing health of their supply base, the Detroit 3 are culling the herd by yanking business from the sick and weak and giving it to bigger, stronger rivals.
That points to a long-term future of fewer, stronger suppliers when the industry turns up and, in the meantime, a grim landscape of layoffs, plant closings and liquidations for the vendors left behind.
"This is happening every single day, Dan Sharkey, a partner with consulting firm Brooks Wilkins Sharkey & Turco of suburban Detroit, says of the redistribution of business. "The automakers are much more eager to prevent the risk of ...