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Learning curve on pricing carves into supplier profits.(automotive suppliers)(Brief Article)
Crain's Detroit Business, October, 2002 by Kosdrosky, Terry
Byline: Terry Kosdrosky Supplier profits are not following robust auto production for the first time in history, and inexperience with a new business model is a major reason, industry CEOs and analysts say. Automakers are pushing more of the engineering, design and assembly responsibility for large systems onto suppliers.
Both suppliers and automakers are still learning how to get the prices right, said Timothy Leuliette, CEO of Plymouth-based Metaldyne Corp. ``There is a fundamental transition going on in this industry, and a lot of suppliers don't have experience in taking on that responsibility, managing all of the tier-twos, the supply chain and logistics,'' he said. ``Unless you've done it, you can't know what it's like.'' Likewise, there's...
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