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Originally Posted by ozpacman
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Our domestic market is just too small. With the other three manufacturers gone, the component manufacturers who sold their products to all four suddenly had serious economies of scale issues as well.
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Also from a supplier perspective OEMs have ridiculous requirements where they demand the earth, want to pay nothing and hold you hostage.
Quote:
Further the refusal of the Vehicle Builders to:
a) Provide a defined minimum contract period against which investment may be reasonably amortised.
b) Fair and timely consideration to price adjustments for commodities priced on a global basis. E.g. Oil derivatives.
c) Recognition of the impact of non-achievement of predicted volumes from the tender / contract stage and the consequential affect on cost recovery for tooling set up and investment amortisation.
d) Refusal to assist with supply chain management of component inventory exposure caused by wildly inaccurate forward estimates.
E) Collective purchasing of commodities to assist local suppliers in hedging steel and oil prices.
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https://www.google.com/url?sa=t&sour...yqCG2KEYjdXpoa
I recently rejected an OE customer wanting to purchase from us, their agreement was 60 pages and wanted to hold us to ridiculous terms so I politely informed them to GAGF.
They can sink a business if you agree to their terms and it goes south, the margins are way too low and they're a real pain in the *** customer.