Time for 20% supplier cost reductions due to our falling stock price and stupidity. What a difference two weeks can make.
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Heck, we may need a 30% reduction now.
Yea, due to texturing and other things, many supplier margins already low and in some instances negative on parts.
I was at Visteon in the early 2000's when Ford imposed a 20% reduction in our component prices. That resulted in a 20% workforce reduction. This preceded the formation of ACH a couple of years later to sell/close down the majority of the "unprofitable" divisions. Twenty years later I don't think Visteon has any production plants in the US. There is much more to this story however my point being that most supplier margins are not great to begin with. Watch the jobs flow back off shore if the OEM's try to increase short term profits on the backs of suppliers.