Auto suppliers name keenest cost-cutters

20 July 2005
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21 July 2005

Automotive suppliers say Ford, Volkswagen and General Motors are the companies that press them hardest to cut costs, according to research.

The study, by Supplier Business, is based on 84 suppliers.

Their favourite clients are BMW, Toyota and Mercedes-Benz. And most are working to do less business with their least preferred customer.

The results follow an announcement by Volkswagen last month that it plans to cut costs by ?4 billion by 2008 and ?1 billion in materials by 2006.

However, it dismissed reports it has asked suppliers to cut prices.

Although suppliers told the survey VW is seen as primarily cost-driven, they rated it only the fourth most successful at achieving low prices from suppliers.

Volkswagen is planning to change its purchasing model under Wolfgang Bernard, who is due to take over as head of the Volkswagen-brand group in January 2006.

SMjul2005

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