Metals crash- Big 3 auto adjusting costs, or bought forward contracts ?

[cbelt3]

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.

[MacMagus]

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.

[lafinfil]

US Steel closing down a few http://www.bnd.com/homepage/story/565352.html

[freeradical]

Metals prices have retreated some, but they're still up there...

[andypie48]

i don't think gold is the metal they are talking about.