Carmakers squeeze component makers

Vehicle manufacturers are passing price pressures from consumers to their component makers and other suppliers, according to an Economist Intelligence Unit (EIU).

“Suppliers are in a quandary, as manufacturers are demanding they boost quality while cutting costs,” adds the survey of views of 200 senior executives. They expected carmakers to pass more design costs to suppliers.

The EIU says communication within the industry is more important than ever because of attempts by car builders to shift production of larger parts to suppliers.