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LYNNWOOD, Wash. (Reuters) - Boeing Co suppliers are shedding jobs and capacity to cope with a halt in 737 MAX output, but while that staves off chaos, aerospace executives worry the industry might be unable to ramp factories quickly enough when the plane wins approval to fly again. Boeing, struggling to restore public confidence and recover from the biggest crisis since its founding in 1916, has halted production of the once fast-selling 737 MAX, which was grounded in March following two deadly crashes. As a result, industrial heavyweights like fuselage maker Spirit Aerosystems have already laid off workers. Now a...

The U.S. Air Force's top civilian warned his aerospace suppliers to expect an increased Pentagon focus on affordability amid mounting international competition. Nearly all components of the service's budget, including personnel costs, are growing faster than the overall Air Force budget, Secretary Michael Donley told a kickoff meeting of a Senate caucus aimed at promoting a strong, secure and competitive U.S. aerospace industry. "Global competition alone would make it imperative for our friends in the defense industry to reduce costs if they want to continue to be competitive in an increasingly sophisticated and capable international market for defense goods and...

(WXYZ) - The FBI is confirming raids at the offices of three Michigan auto suppliers who do work for Toyota. Search warrants were served Tuesday evening at Yazaki North America, DENSO International and Tokai Rika. Yazaki sells electronic components and DENSO makes accelerator pedals. Denso has released the following statement about the situation "DENSO International America, Inc. (DIAM), U.S. subsidiary of DENSO Corporation, was inspected on February 23, 2010 by the U.S. Federal Bureau of Investigation and the U.S. Department of Justice in regard to U.S. antitrust laws. DIAM is cooperating with this investigation." Stay with Action News and WXYZ.com...

American Axle sues steel maker to resume shipments NEW YORK (AP) -- Auto parts supplier American Axle & Manufacturing Holdings Inc. is seeking a court order to get one of its steel suppliers to resume deliveries, saying that cutting off supplies threatens the entire auto supply chain. ... In its request filed earlier this month, American Axle alleged that Republic wrongfully backed out of a four-year contract to supply custom-made steel. According to court documents, Republic sought from American Axle a "binding schedule" for deliveries, citing the parts maker's weak financial condition.

Auto parts supplier bailout will fail The Obama Administration has committed $5 billion of TARP money to try to prop up the "Big Three's" supplier base. Under this program, suppliers to GM and Chrysler will be able to sell their parts to an intermediary if they are willing to pay a 3% premium. GM and Chrysler will have to pay $250 million each to join. Ford is declining this program. If GM and Chrysler are going to file chapter 11 soon, this might help the suppliers, who are very dependent on them, to survive a few more months until the...

Automotive industry continues a slow death. J.D. Power and Associates Reports that U.S. Light-Vehicle Retail Sales in February are down by nearly 38% from one year ago. GM and Chrysler LLC are receiving TARP money from a government bailout. The suppliers for the US auto companies are not getting any assistance. Many are facing a tight cash flow that could force them into bankruptcy. They have high priced materials (like steel) in their supply chains. Many have significant inventories of goods. While car sales have declined 38%, demand for auto parts for some vehicles have declined even more. Almost every...

After dropping $17.4 billion in what was only the first installment of the Automotive bailout, the auto parts suppliers are lining up for their turn. Many of the auto parts suppliers are in as bad a shape as the "Big Three". Auto parts have always been a competitive business with slim profit margins. The auto manufacturers are always pitting the suppliers against each other for bidding. Every year they call the suppliers up and demand a price reduction. Recently, the skyrocketing price of steel has taken a heavy toll on suppliers. The auto manufactures have refused to accept all of...

GM Moving Tools From Struggling Suppliers By Tom Murphy WardsAuto.com, Jan 16, 2009 2:58 PM DETROIT – Contractors for General Motors Corp. spent much of the Christmas holiday moving more than 700 tool sets from about 15 suppliers that were struggling to meet the terms of their agreements, the auto maker’s purchasing chief says. “We don’t do this because we like to do it,” Bo Andersson, group vice president-global purchasing and supply chain, tells journalist here at the North American International Auto Show after an event recognizing GM’s top suppliers. “When we see suppliers struggle, we say, ‘Where do we...

As the euphoria of the NSG waiver starts to ebb, I wonder how many of you realise India owes an enormous thank you to George Bush? He’s done for us what no other world leader could have done, and I would add, perhaps none other was prepared to do. But even if you insist there are one or two leaders — Putin or Sarkozy — who might have tried, I’m confident they would not have succeeded. America is the only country that could have delivered the NSG waiver. George Bush is the only president who decided to do so. First,...

Sometimes you hear a discussion or debate in which the participants seem to be getting nowhere, don't understand the subject and can't see the obvious. A prime example of this is the illegal-immigration controversy, and the folks making lots of noise are on conservative talk radio. The conversations on the subject usually revolve around two main themes: The president has sold out his conservative base, and he is ignoring national security by allowing illegal aliens to swarm over the border. Tune in to any of the far-right talk shows, and you can hear variations on these two themes just about...

Detroit - Auto-parts suppliers' trust in General Motors Corp. is at its lowest level in 15 years, according to a survey by a Michigan consulting firm. Eighty-five percent of the suppliers questioned who work with GM reported a poor working relationship and just 3% said they have a good or very good relationship. Fifty-three percent of suppliers said they prefer not to work with the world's largest automaker, saying the company has little regard for suppliers' financial stability. Planning Perspectives Inc. questioned 259 suppliers in March and April about whether automakers help or hinder them, how well they communicate and...

<p>DEARBORN — Already facing shrinking profit margins, some suppliers are questioning new contract language revisions that give the automaker sweeping new power over their relationship.</p> <p>The new language enables Ford to effectively change the terms and conditions of supply agreements during the life of the accords, critics charge, and could damage already strained relations between the automaker and suppliers. “You make a deal, you live with the deal,” said Gerry Fedchun, president of the Automotive Parts Manufacturers Association. Based in Toronto, its 400 member companies rank Ford, GM and ’s Chrysler group among its primary customers.</p>

Though it may be years before businesses regularly track all supplies moving through their supply chains with radio-frequency identification, the technology has gotten a big boost from the federal government that could speed its adoption. The Department of Defense issued a mandate early this month requiring all of its suppliers to use passive RFID tags on the cases and pallets they deliver to its various branches by January 2005. The Defense Department isn't the first to require that suppliers support RFID--Wal-Mart Stores Inc. has told its top 100 suppliers to use RFID tags on cases and pallets by the same...

Outside Criminals Facing consequences. By Stephen Bryen As the inevitable process of Iraqi liberation unfolds, we are slowing beginning to open up and examine Saddam's arsenals, military factories, storage sites, and WMD assets. In some of these we will find equipment and technology, and collateral evidence that will show how outside countries helped Saddam. It is very important that the United States go after the "outside criminals" responsible for supplying Saddam, just as we will go after the henchmen of Saddam's regime — the "inside criminals." After the Gulf War, the U.N. buried the evidence of foreign companies and foreign...