12-04-2008, 04:01 PM
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.
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.