By pushing costs pressures, manufacturing responsibilities and risk down to suppliers, U.S. automakers may be jeopardizing vehicle quality. Here's an approach for smoothing the road ahead.
It's an approach that may pay short-term dividends for the automakers, but one that, if continued, could lead to major problems. Due to endless price squeezing by the OEMs, profit-starved suppliers may be forced to drastically cut spending in key areas such as product development and quality management systems, in an effort to stave off bankruptcy. The results could include a serious deterioration in U.S. vehicle quality.