| It must be tough being an American based auto | | | | possibly forcing massive layoffs and causing the |
| supplier these days. On the one hand the economy is | | | | bankruptcy of those suppliers who would lose |
| going through a difficult patch forcing suppliers to lay | | | | business and cash. In the meantime, many companies |
| off workers and cut back on capital plans. Yet, on the | | | | are conserving cash by cutting back on the work |
| other hand current problems could become much | | | | week, extending seasonal shut downs, and |
| worse as several significant customers are expected | | | | implementing across the board salary reductions in a |
| to scale back their businesses, perhaps even shutting | | | | bid to stay afloat. |
| down altogether. | | | | Many suppliers would love to cut their dependency on |
| With General Motors Corporation, Chrysler LLC, and | | | | GM, Ford and Chrysler but with the entire market being |
| the Ford Motor Company each struggling for survival | | | | down, that won't be an easy task. Even Toyota and |
| and awaiting government assistance in the form of | | | | Honda - considered by many to be the healthiest |
| low cost loans, auto suppliers are finding themselves in | | | | automakers in the world - have cut back production in |
| a quandary - if Detroit's three major automakers go | | | | a bid to save cash. With foreign automakers |
| bankrupt, what will this do to their businesses? | | | | conserving money, the chances of shifting some of |
| Importantly, will these same auto suppliers be able to | | | | their business away from the Detroit Three is minimal |
| weather the storm to continue supplying parts for the | | | | at least for now. |
| non-union automakers whose factories dot the US | | | | How will all of this shake out? No one is certain. If the |
| south? | | | | market has yet to hit bottom then additional |
| According to a recently published article in the Wall | | | | bankruptcies of smaller auto parts suppliers is likely to |
| Street Journal, auto supply companies are preparing | | | | occur and the probability of the collapse of one of the |
| for the worst. Many have already cut back on | | | | three Detroit automakers increases. In the end, the US |
| production, laid off workers, and have postponed | | | | car market will likely be much different with fewer |
| capital improvement projects in a bid to conserve | | | | manufacturers building cars and even fewer |
| cash. Employing some 730,000 people, the nation's | | | | companies supplying them with parts. |
| auto suppliers provide parts for a variety of American | | | | Copyright 2008-2012 -- Matthew C. Keegan is the |
| built cars including vehicles built for Toyota, Honda, | | | | owner of a successful writing and marketing business |
| BMW, Mercedes, Subaru, Hyundai and other foreign | | | | based in North Carolina, USA. He manages several |
| owned companies. | | | | websites and is a contributing writer for Andy's Auto |
| If even just one of the Big Three companies were to | | | | Sport, a retailer of quality Lamdo doors and ground |
| go under, the entire supply chain could be disrupted, | | | | effects. |