Supplier sector restructuring coming
Who'd be an automotive industry supplier (especially in North America)? There are of course many successful companies who survive and thrive in spite of everything, but there will be plenty of vulnerable businesses looking around nervously at the health of their customers and at cashflow projections right now.
Magna - a daddy in the supplier world - reckons that up to 30% of suppliers in North America could go under when the grief hitting the OEMs is transferred to them in the form of business that is simply gone or available at a new and much lower price. And Magna also reckons it's in a position to do everyone a favour and hoover up the wreckage for an orderly bout of restructuring that doesn't disrupt the industry too much.
Nice guys. I'm imagining Magna's Don Walker, 'The Don', talking about 'orderly restructuring' with a throaty Brando voice - see Golding's use of the word 'chilling' in his piece, below link. One just hopes they don't go in for too much dancing on the graves of those less fortunate...
GOLDING'S TAKE: Tier 1 supplier CEOs reach for their revolvers
CANADA: Magna swings to loss in Q4
This entry was posted on Tuesday, March 3rd, 2009 at 8:04 am and is filed under Daves Blog. Original contribution by David Leggett's automotive industry blog - from just-auto.com. Responses are currently closed, but you can trackback from your own site.