Trials and Tribulations: Four Core Hurdles

Trials and Tribulations: Four Core Hurdles
Automotive News World Congress, January 16, 2002

By Dave Bing, Chairman, The Bing Group
January 14, 2002

Dave Bing Dave Bing is chairman of The Bing Group. PowerPoint presentation -- 229 KB Related Links 2002 Automotive News World Congress index

HURDLE 1: Vehicle manufacturers ("OE's") have unrealistic cost cutting expectations.

1A. The remaining, "survivor" automotive suppliers have been focused on cost cutting for the last five to ten years, pushing "new" cost cutting efforts to an ever-increasing point of "diminishing returns". Liken the industry-wide focus on cost cutting to dieting; losing the final two extra pounds is exponentially tougher than shedding the first 20 pounds. And, in some instances, some automotive suppliers are surviving by operating below normal body weight.