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Old 10-19-2013, 10:15 AM
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A good news-bad news story. The increased sales of new cars and trucks will put a crimp on the parts suppliers according to a survey reported in Automotive News.

"Automakers are likely to face spot shortages of parts next year if North American vehicle production tops 16 million units, a new survey of suppliers concludes."

"Chrysler Group may be especially vulnerable to spot parts shortages. Forty-two percent of the respondents that supply Chrysler said they had trouble meeting production quotas."

"Capacity may finally be at the breaking point," the survey concluded. "If current projections ... are correct, expect this to be one of the top issues for the industry in 2014."

"Chrysler and other automakers have anticipated the problem and have taken steps to strengthen ties with their suppliers. According to the survey, nearly 65 percent of Chrysler suppliers said they had been offered long-term contracts for new business."
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Old 10-20-2013, 01:41 AM
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Thanks for the report, Geo.
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Old 10-21-2013, 05:36 PM
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A related story in today's Automotive News: Surge in auto production impairs quality of parts, Ford purchasing boss says.

Not just a parts shortage but also quality problems as suppliers try to meet demand.

"The recent surge in U.S. auto production is hurting vehicle quality because automotive parts suppliers have less time to fix problems that emerge on the line, Ford Motor Co.'s new global purchasing chief told reporters today."

"Auto parts suppliers, which closed scores of factories during the financial crisis, are operating around-the-clock to meet consumer demand for cars and trucks that is marching toward pre-recession levels."

"U.S. auto sales are on pace to reach 15.6 million units this year, according to J.D. Power and LMC Automotive. Many analysts expect auto sales to exceed 16 million vehicles in 2014, possibly topping the 16.1 million vehicles sold in 2007."

"In the past when we weren't running at full capacity, when we weren't running at three shifts, when we weren't running seven days a week -- you actually had more cushion. Now we've removed that cushion. We're a lot more exposed in terms of any production issues because you just can't recover, added Thai-Tang, who assumed his current role on Aug. 1."
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