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+--- Thread: Metals crash- Big 3 auto adjusting costs, or bought forward contracts ? (/showthread.php?tid=67586)
Metals crash- Big 3 auto adjusting costs, or bought forward contracts ? - cbelt3 - 12-04-2008
Is the 'buyout' demand properly analyzed and cost accounted ? Metals prices worldwide have crashed back to the pre-china bubble days. Did the "Big 3" forward buy metals at outrageous prices, and are we paying for those bad business decisions ?
I suspect the answer is "Yes".
We're in the process of beating our metals suppliers into reducing costs, and canceling our forward contracts as needed. The suppliers don't like it, but who is gonna buy ? It's a buyer's market.
Re: Metals crash- Big 3 auto adjusting costs, or bought forward contracts ? - MacMagus - 12-04-2008
It's not just metals.
It seems that they're taking any opportunity to threaten or sue suppliers in the hopes that arbitration will result in renegotiated contracts. Notably, Chrysler is trying to force Johnson Controls to renegotiate their present battery deal with a lawsuit. It's interesting watching to see who will cave first.
Re: Metals crash- Big 3 auto adjusting costs, or bought forward contracts ? - lafinfil - 12-04-2008
US Steel closing down a few http://www.bnd.com/homepage/story/565352.html
Re: Metals crash- Big 3 auto adjusting costs, or bought forward contracts ? - freeradical - 12-04-2008
Metals prices have retreated some, but they're still up there...
Re: Metals crash- Big 3 auto adjusting costs, or bought forward contracts ? - andypie48 - 12-05-2008
i don't think gold is the metal they are talking about.