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Blood from a Stone: Chrysler Demands Price Cuts from Suppliers

According to Rubber & Plastics News, Chrysler L.L.C.’s purchasing chief, Scott Garberding, is requiring a new round of price cuts from suppliers as the auto maker faces a Feb. 17 deadline to justify its federal bailout money. The cuts would become effective April 1, and would be in addition to annual price decreases required contractually of suppliers. Additionally, Chrysler will not grant price increases in 2009 related to increases in raw-material costs.

Details here (subscription required).

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Our blog, News from Notch Consulting, has been published continuously since November 2007 with free news and updates related to the tire, rubber, carbon black, silica, and rubber chemicals industries.


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