Suppliers just saying no; Gap widens between price cuts automakers ask for, what they get.(Brief Article)

Crain's Detroit Business, November, 2001 by Strong, Michael

The gap between parts discounts demanded by automakers and concessions granted by the suppliers grew over the past two years, according to a survey of 100 suppliers. The average price-cutting request from the automakers and tier-one suppliers was 5.4 percent in 2001; but tier-one, two and three suppliers gave back an average of only 3 percent, according to a survey conducted by IRN Inc., a Grand Rapids-based consulting and forecasting company.

IRN conducts the survey to gather information to advise clients. In 1999, the last time the survey was conducted, suppliers gave 3.6 percent in reductions; but automakers asked for only 4.8 percent on average. In 1997, the first year the company conducted the survey, suppliers gave 2.1 percent, while automakers asked...

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