Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Rubber Division IEC
    • ITEC
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • War in Ukraine
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • 2022 Hose & Belt Manufacturers Conference
    • 2022 International Silicone Conference
    • 2022 International Tire Exhibition & Conference (ITEC)
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
August 06, 2007 02:00 AM

Need may force Detroit auto makers to change practices

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    It's the statement automotive component manufacturers have longed to hear for decades. ``The Detroit auto companies-which previously had focused on the lowest possible price-are starting to grant suppliers price increases for new technology and materials costs.''

    The words are from a story in this issue picked up from Automotive News, which, like our publication, is owned by Crain Communications. AN had a panel discussion at a supplier roundtable it sponsored in Detroit, and the article was part of the coverage of the event.

    The panelists-an esteemed lot, CEOs and/or presidents from five major powertrain and emission control equipment suppliers, a couple of which have rubber product operations-were discussing the Detroit auto makers' newfound interest in producing cleaner, more fuel-efficient vehicles.

    Prolonged higher fuel prices and the nation's over-reliance on foreign oil has spurred Congress to demand an increase in auto fuel economy standards. That, the suppliers said, has caused American auto makers to become interested in some of the green automotive technologies of Europe.

    The panelists said the Detroit auto makers are hot on transferring the European fuel-saving technology to America. And they recognize they have to rely on suppliers to make such a fast change.

    Here's the most interesting part: The auto makers seem willing to pay for that effort.

    This from an industry that traditionally-we'll be kind-has been more preoccupied with saving its own skin than helping its vendors.

    Nevertheless, periodically the former Big Three (alas, now just the Detroit Three) auto makers talk about partnerships and other ways of playing nice with suppliers. Then times get tough, and the old bully returns.

    Things might be different this time. Panelist Linda Hasenfratz, CEO of Linamar Corp., put it best: ``You can't eliminate somebody's margin, or you're going to eventually eliminate that supplier.''

    If the Detroit auto makers really do start compensating their suppliers adequately, they'll find that in the auto game, there doesn't have to be just one winner.

    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Parker-Hannifin to sell Avon, Ohio-based unit for $440 million
    2
    Wacker aims to increase global silicone capacity
    3
    Hankook christens tire proving grounds
    4
    John Carroll explores silicone's history in keynote presentation
    5
    Succession plan, investments build foundation for RubberForm's future
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Rubber Division IEC
      • ITEC
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • War in Ukraine
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • 2022 Hose & Belt Manufacturers Conference
        • 2022 International Silicone Conference
        • 2022 International Tire Exhibition & Conference (ITEC)
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
    • Advertise
    • DIGITAL EDITION