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Article: Shaky auto suppliers culled; Detroit 3 trying to avoid parts disruptions.(NEWS)
- Article from:
- Crain's Detroit Business
- Article date:
- July 27, 2009
- Author:
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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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 in Birmingham, said of the redistribution of business.
"The automakers are much more eager to prevent the risk ...