Key to the Highway

Observations about cars and the auto industry

Posts Tagged automotive

Supply Slide Economics

Automotive parts suppliers can now take their turn at the bailout trough. The Treasury Department has opened the spigot to the tune of $5 billion. Companies rejoiced. The backdrop, however, is much darker; more like a game of musical chairs with the lights turned off. A week before the parts-maker bailout was announced, an analyst with Grant Thornton warned that 500 auto suppliers were at serious risk of failing, and with them much of the supply chain.