Auto execs ask: Are suppliers ready for rebound?

Mike Colias

Published: October 10, 2011 6:00 am ET

Related to this story

Topics Automotive

DETROIT (Oct. 10, 1:25 p.m. ET) — Purchasing executives at several big automakers say they are concerned about whether their suppliers will be able to keep up as volumes rise.

“A concern I have is, as you look at the supply base, did we take too much out?” Bob Socia, vice president of global purchasing for General Motors, said at an industry conference last week. “Are we equipped for the rebound?”

Most suppliers cut deeply during the downturn. Since the recovery began last year, industry insiders have questioned whether suppliers — especially smaller ones — have the equipment and workers in place to meet growing demand.

Many automakers are probing more deeply into the health of their supply base, said Robert Young, Toyota’s top purchasing executive in North America.

“At the Tier 1 level, we’re pretty confident they have the installed capacity to support our ramp-up over the next year to year-and-a-half,” Young said last week on the sidelines of the annual automotive summit sponsored by the Rainbow PUSH Coalition. “The question is: ‘What happens with the entire industry once you get into the subtiers?’”

Sigmund Huber, Chrysler Group’s director of supplier relations, said that in a few cases, “Tier 2 and Tier 3 suppliers just aren’t able to keep up, which then limits everybody up the chain.”


Comments

Auto execs ask: Are suppliers ready for rebound?

Mike Colias

Published: October 10, 2011 6:00 am ET

Post Your Comments


Back to story


More stories

Image

ZF, TRW combination creating a new player for autonomous autos

September 23, 2014 9:59 am ET

The era of autonomous vehicles is close at hand — and is already changing the auto industry in fundamental ways. The latest and biggest example?...    More

Image

Delphi buying connector maker Antaya

September 22, 2014 2:25 pm ET

Delphi Automotive plc will buy Antaya Technologies Corp., a Rhode Island company that supplies wire harnesses and other technologies that connect...    More

Image

Poland's Boryszew to work with Mitsui on lightweight auto parts

September 22, 2014 10:12 am ET

European plastics car parts maker Boryszew Group has signed a letter of intent to work with the Japanese investment and trading conglomerate Mitsui & ...    More

Image

Plasan investing in capacity, jobs to supply auto market with carbon fiber

September 19, 2014 3:05 pm ET

Growth in the emerging automotive market for carbon-fiber composites has spurred a $29 million investment in a Walker, Mich., factory    More

Image

Toyoda Gosei expanding in Mexico

September 19, 2014 2:33 pm ET

Toyoda Gosei North America Corp. is investing $67 million in a 398,000-square-foot plant in central Mexico to supply the automotive industry with plas...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events