The Universal Selection Source: Plastics & Elastomers

Print Send
Industry News

Collins & Aikman reportedly seeks retroactive cuts from suppliers

Published on 2002-12-17. Author : SpecialChem
TROY, MI, Dec. 17 -- Struggling auto supplier Collins & Aikman Corp. is retroactively cutting what it pays its suppliers by 5%, according to the Detroit Free Press.

In letters sent over the last few months, the interior parts supplier warns suppliers the 5% cuts go back to all purchases since Jan. 1, 2002, the report said. It blames the cuts on cost-cutting pressure from automakers like the Chrysler Group and on its own financial problems.

One letter dated Nov. 25, says the cuts are "part of Collins & Aikman's plan to meet fourth-quarter cost-reduction goals," the story said. According to documents attached to the letter, it was sent to about 225 suppliers that do less than $1 million a year in sales with Collins & Aikman. Many of the suppliers receiving the letter are small, locally owned suppliers such as Farmington Hills-based Rieter Automotive and Auburn Hills-based Irvin Automotive, the newspaper said.

The letter warns this is "notification of Collins & Aikman's intent to issue a debit memo for 5% of our estimated annual buys." Similar letters were sent in August and October.

Collins & Aikman has annual sales around $4 billion. Through the first nine months of 2002, it had lost $50.4 million on sales of $2.92 billion. It lost $46 million last year.


Online Course

62 Days left to register

Wednesday Sep 2 2015

By Laurence Pearson

Better search and map US patent claims and reduce the risk of missing an important one that could ruin your own patentability or freedom to operate by getting practical advice to structure your search and to identify connections between patents for a given technology.

65 Read More
Channel Alerts

Receive weekly digests on hot topics

Receive your alerts

Back to Top