Discuss Detroit Archives - Beginning January 2006 Japanese suppliers feeling the pinch Previous Next
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Lilpup
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Username: Lilpup

Post Number: 868
Registered: 06-2004
Posted From: 152.163.100.8
Posted on Saturday, March 04, 2006 - 11:47 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

and under the gun of the South Koreans

http://www.asahi.com/english/H erald-asahi/TKY200603030159.ht ml
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Mikeg
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Username: Mikeg

Post Number: 13
Registered: 12-2005
Posted From: 69.136.155.244
Posted on Saturday, March 04, 2006 - 4:51 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I say, "welcome to the real world!" to those Japanese parts makers who decided to expand beyond their home country and its protectionist policies. It's a dog-eat-dog world out here in the global free trade economy.
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Royce
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Username: Royce

Post Number: 1488
Registered: 07-2004
Posted From: 70.227.207.76
Posted on Saturday, March 04, 2006 - 6:13 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

WTF, you mean to tell me that American car companies buy parts from Japanese auto parts suppliers? I will have to claim ignorance on this one. I did not know.

So, Delphi is losing money not only because GM is not selling cars, but because GM is buying parts from a Japanese company instead of Delphi? That's like a parent sending their kid to college, but finding out that the kid has cancer, and instead of helping their kid get treatment so that he or she can get better and stay in school, the parent stops all financial support and decides to give financial support to another student on campus who's healthy. That's f'ed up.
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Bibs
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Username: Bibs

Post Number: 463
Registered: 10-2003
Posted From: 205.188.116.137
Posted on Saturday, March 04, 2006 - 10:34 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

GM, Ford and Daimler Chrysler can't afford to accept increases in piece price due to rising commodity prices so the poor suppliers are just going bankrupt. On top of that the volumes are dropping. Looks like any auto parts supplier doing business with any of the big three are in trouble. Wow
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Mikeg
Member
Username: Mikeg

Post Number: 14
Registered: 12-2005
Posted From: 69.136.155.244
Posted on Sunday, March 05, 2006 - 12:49 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

GM, Ford and DC have the highest structural costs among the auto manufacturers in North America. Thus they cannot afford to grant price relief to their suppliers when commodity prices increase. The low cost producers like Toyota not only can afford to grant some relief, they work closer with their suppliers to find ways to offset rising costs by allowing them to make other material substitutions and/or processing changes.

Delphi is more like the case where a parent kicks their adult child out of the house and subjects them to a case of "tough love" by making them compete for their business by getting quotes from multiple suppliers and awarding the business on the basis of best price, quality and delivery. As a high-cost supplier, Delphi was handicapped from the start and has had to exit those business lines where they saw little opportunity for growth or sturctural cost reductions.
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Crazy_pete
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Username: Crazy_pete

Post Number: 18
Registered: 01-2006
Posted From: 72.138.178.249
Posted on Sunday, March 05, 2006 - 1:16 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

I read that the Ford Fusion has more Japanese parts in it than the Mazda 6.

Go figure.
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Bibs
Member
Username: Bibs

Post Number: 464
Registered: 10-2003
Posted From: 152.163.100.8
Posted on Sunday, March 05, 2006 - 11:10 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Mikeg - I agree with your points. I have heard that the Japanese car manufacturers are better at using engineering to eliminate parts or reduce the cost of the part.
I own a Pontiac Vibe which is built at the NUMMI plant and save for the body, it is a Toyota Matrix. When I went to change my oil, I saw the linkage which keeps the wheels straight. The first word that entered my mind was tinker toys. The engineering is so minimalistic that it is amazing. It also explains why the wheels don't stay aligned and why the tires wear out prematurely. I'm sure Consumer Reports will note that fact! Yeah, right!

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