There’s a lot more to this article, more about Lapeer and other small and medium sized stampers, but I found this part interesting. They are phrasing it in terms of minority suppliers, but in my experience it’s true of many small suppliers, regardless of their minority status.
Dave Bing, CEO of Detroit-based Bing Group, said Lapeer’s problems illustrate the bind facing many minority automotive suppliers as steel prices escalate and customer volumes decline.
Most minority suppliers are small to mid-size companies with weak balance sheets that find it difficult to fund expansions without additional financing, Bing said. But the banking industry is reluctant to invest in the troubled automotive industry.
‘Gerry and I have been friendly competitors for the last 30 years,’ Bing said. ‘I’m sorry to see what he is going through, but it is not different than what all of us are going through.’