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 Sun, 14 Dec 2008 18:44:58 -0500, Wes wrote:

F. George McDuffee wrote:

FWIW #2 -- standard Detroit vendor terms are now payment in 45
days after receipt of invoice. This means that the vendor has
*AT LEAST* 15% of their yearly *GROSS* income from that product
at risk, effectively making a zero interest, zero collateral
loan. Blogger information indicates that the payment times have
been gradually increasing above the 45 day standard, leading to
the assumption of a final "bust out scam" on top of the long-term
Ponzi scheme. [Why leave any money on the table?]

Don't forget how tooling and such get held out for PPAP approval and all the other games
to stretch payment. I have a feeling many vendors aging report go at least 60 days.


Indeed, and there are all sorts of "quality games" that are paid
to gouge the vendor for even lower prices and stretch payments,
as in "I know it's to the print, but you should have known that
wasn't what we wanted."

One example [which seems to have been resolved] was Ford's
problems with their diesel engine supplier [Navistar]. Amazing
how the engine quality improved when Navistar stopped deliveries
because of undocumented warrenty/quality charge backs.

Much of the reported "quality problems" seem to trace back to an
attempt by Ford to break a contract to buy engines from Navistar
so they could build their own diesel engine.

Same thing occurred in the 60s with Ford/Holley, and GM/Carter,
when the car companies decided to get into the carburetor

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).