More Trouble Looms for Auto Suppliers

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The new four-year agree­ment between the UAW and Detroit automak­ers con­tin­ues to shake up the domes­tic auto busi­ness. The low­er sec­ond-tier wage struc­ture will allow automak­ers to “insource” the pro­duc­tion of vehi­cle com­po­nents. Ford will be the first to pro­duce instru­ment pan­els for Tau­rus and MKS that nor­mal­ly would have been pro­duced by an inde­pen­dent sup­pli­er. Detroit automak­ers promised the UAW to insource a cer­tain num­ber of parts. This can­not be good news for parts sup­pli­ers.