Many suppliers predict inexperienced parts makers will soon come back to the automakers and ask for higher prices or admit they can't deliver, according to a report by the Dow Jones News Service. That pattern emerged in the Lopez days. Automakers had to go back to their traditional suppliers and ask them to either help new suppliers complete a job for a consulting fee or crank up their own output to fill the gap. Larger, first-tier suppliers with plants in the region say they aren't worried about the new system. I'm confident that when better understood, it will be good for Tower Automotive and Traverse City.
Tower specializes in stampings such as body frames and suspension components.
The reason major suppliers aren't worried is that they don't just supply nuts and bolts, brackets or wires. They usually have long-term contracts and are tightly integrated with the carmakers' assembly operations. We've been involved in Internet bidding and done quite well, said Don DePault, a spokesman for Avon Automotive, which has a Cadillac operation among its many plants. If you know your strengths, you can do well. So, we don't fear it.