As Business Improves, Supplier Relations Sour

Carmaking is a cyclical business. In crisis times, it's "we are all in this together." When business improves, relations between automakers and their suppliers revert to the old arrogance, to hurry up, make more for less. It's that time again. A study conducted by Planning Perspectives Inc. shows that "recent improvements in rapport between automakers and their supply base stalled this year, with suppliers complaining about lack of communication, last-minute engineering changes and inconsistency in management." This according to Reuters. Automakers are pushing suppliers to increase production to meet higher-than-expected new vehicle demand, however, "Most of the suppliers are finding it very difficult to increase production to meet the needs of the OEMs," PPI President John Henke told Reuters. "They haven't forgotten what they went through, so they're much more prudent, much more cautious than the OEMs." from The Truth About Cars http://www.thetruthaboutcars.com

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