Thread: $73 an Hour
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F. George McDuffee F. George McDuffee is offline
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Default $73 an Hour

On Fri, 12 Dec 2008 17:08:58 -0800, "John R. Carroll"

The news on most of the auto blogs is that the Chrysler vendors
are rapidly moving to supplying parts only on a COD basis.

COD inthis environment is mot at all George.
Merry Whatever.


In one sense yes it is moot, but it may well force Chrysler into
bankruptcy before they had planned. Also note that the status of
the Chrysler vendors is rapidly dropping.

The failure of a single critical [sole source] supplier to
provide components, whether due to COD issues or B/K will put
Detroit out of business just as much as a B/K filing by one of
the car companies. All three companies are extensively
interconnected through their supplier base, and GM/Chrysler are
"joined at the hip" through not only through their joint
ownership of GMAC but the large involvement in Delphi [currently
in Chapter 11] by Cerberus.

That this is occurring at all is yet another manifestation of the
large amounts of "bad blood" that has been generated over the
years between Detroit management, and everyone with which they
have had dealings, from their suppliers and employees to their
dealers and governmental units in which they operate.

American Axle is another critical area, and is just coming off a
long and bitter strike, mainly over wage rates. The employees
were less than pleased about a 10$-15$ / hour wage cut to "keep
the company competative" after it was discovered American Axle’s
corporate CEO Richard Dauch made at least $60 million over the
last five years.

It is interesting that the VP for Procurement at Chrysler just
resigned for "reasons of health."

Chrysler's supplier issues expand
Top procurement exec to retire for health reasons


The health of Chrysler's network of parts suppliers is
"increasingly at risk" with the number of companies on its watch
list for potential problems increasing by 25% within the past
three weeks, the company said Friday.

The revelation came as Chrysler's top procurement executive, who
oversees purchases from suppliers, announced his retirement from
the company. John Campi, who had a long working relationship with
Chrysler CEO Bob Nardelli, joined the automaker in January 2008
as executive vice president of procurement.

Campi "has elected to leave Chrysler for health-related reasons,"
Chrysler said in a statement.
for complete article click on

Unka' George [George McDuffee]
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).