The article is focusing a lot on the behavior of the automakers not paying thier suppliers in a “timely” manner. I don’t think they realize that 60 days to pay a supplier in the US auto industry is not common.
Cashflows for a new supplier to a US automaker don’t start for 12 months. Think about that. The business has to float 12 months of operational expenses before it receives its first payment. If you can make it then business is pretty reliable.
Cashflows for a new supplier to a US automaker don’t start for 12 months. Think about that. The business has to float 12 months of operational expenses before it receives its first payment. If you can make it then business is pretty reliable.