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Suppliers’ health is top concern, Mulally says

Posted Thursday, Jun 18, 2009, 3:13 pm in Employee News

The health of the supply base is now the auto industry’s top concern, Ford Motor Co. CEO Alan Mulally said yesterday, the Automotive News reported.

“The most important thing that we do now is help them consolidate because we have this overcapacity,” Mulally said, speaking after the National Summit, a forum sponsored by the Detroit Economic Club. “Everybody is going to be really careful that we do that and that we don’t topple the supply base,” he said, adding that Ford is working with other automakers who share their suppliers.

The U.S. presidential auto task force has denied suppliers’ requests for $8 billion to $10 billion in additional federal aid, the trade paper said. Ford also is seeking more concessions from the CAW and the UAW, which agreed to new terms as prefaces to Chrysler LLC’s and General Motors’ bankruptcies, the story said. A no-strike clause through 2015, like that in Chrysler’s UAW agreement, is part of the negotiations, Mulally said. (Automotive News)
 
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