All the suppliers are extremely nervous. They stand to lose a considerable amount of cash. This is going to be a decision Miller makes on his own based upon where he's at. ... How do you predict a decision like that? |
GM contends they have been paying above-market pricing to Delphi for a number of years to keep Delphi in business. |
It's going to give them a significant competitive advantage. |
Some suppliers have tried to tell GM that not everybody needs to be global, not all the parts need to be global. But they just figure that's the way they're going to get the cheaper price. |
That's been a major glitch in the whole offshore thing, because oil prices have been going up for a few years. It's a very difficult balancing act. |
That's been a major glitch in the whole offshore thing, because oil prices have been going up for a few years. It's a very difficult balancing act. |
The world has changed dramatically. Even from a year ago, the percentage that would not consider buying an import brand has declined. When you live in Michigan, Ohio and Indiana, you get a real jaded view of what the world really wants. What we like to happen and what's happening in reality are two different things. |
There are a lot of fragile suppliers out there. |
There are always improvements to be made, but in terms of the low-hanging fruit, that's gone. |
There's a great deal of concern among auto suppliers about whether they can remain profitable or survive with union contracts. If Delphi's willing to force renegotiation through a bankruptcy filing, I suspect other suppliers would do the same. |
There's a great deal of concern among auto suppliers about whether they can remain profitable or survive with union contracts. If Delphi's willing to force renegotiation through a bankruptcy filing, I suspect other suppliers would do the same. |
Things like generators, ignition coils and basic brake components do not fall into Delphi's picture because there are so many suppliers competing on price out there it's unlikely you can gain any kind of a competitive advantage. |