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Long Term - Germany - Auto parts official wary on carmaker-supplier ties
MAINZ, Germany -Automotive News/Reuters-14 Nov 2005: -- A senior European automotive sector official took a wary view on Monday on whether many carmakers and parts suppliers would be able to set aside constant wrangling on prices and forge long-term partnerships... Creating stronger ties with a smaller, select group of parts suppliers has proven beneficial to companies such as Toyota and BMW, winning them high marks from suppliers who like the planning security that long-term alliances afford... When manufacturers concentrate on a smaller number of parts makers, that means those suppliers achieve larger economies of scale and can grant customers more price savings as a result... He cited statistics that the number of big suppliers would fall to around 3,500 by 2010, from 30,000 in 1988, as a wave of consolidation continues...
posted by Unknown @ 9:53 AM
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