Can Automotive Supply Chain Overcome Challenges Facing It?
By: Industry Week 08.16.2012
Anyone in the business of manufacturing automobiles, trucks and automotive components back in the tumultuous years of 2008 and 2009 might be tempted to put their metaphorical transmission into neutral, reveling just a little bit in the success that surrounds an industry that is experiencing something akin to a rebirth. But as sweet as that might seem in the short term, there are significant challenges facing automotive suppliers despite the improving production outlook.
Whereas lack of volume in the dark days of 2008 and 2009 created stress on the supply chain, the lack of capability is now creating a new level of stress.
While virtually every viable supplier has returned to profitability, that does not mean they are performing in a manner that will be sustainable in the long term.