Big Three Hit The Brakes

  • By Josh Green
  • · March 20, 2009
  • ·

Today, the Wall Street Journal announced that the domestic auto suppliers are getting help.  The Panjiva research team is looking into these domestic auto suppliers.  In the meantime, take a look at the data on the Big Three’s relationships with their overseas suppliers.  Indeed, shipments from overseas suppliers to the Big Three have dropped precipitously:

  • In July of 2007, Ford received received 914 shipments from overseas suppliers.  By January of 2009, this number had dropped to 514 shipments…  a 44% decline from its July 07 peak.

Shipments to Ford

  • In September of 2007, GM received received 223 shipments from overseas suppliers.  By January of 2009, this number had dropped to 84 shipments…  a 62% decline from its September 07 peak.

Shipments to GM

  • In November of 2007, Chrysler received received 342 shipments from overseas suppliers.  By January of 2009, this number had dropped to 38 shipments…  an 89% decline from its November 07 peak.

Shipments to Chrysler

(If you compare January 09 to January 08, the declines are 25%, 50%, and 71%, respectively.)

These massive drop-offs in shipments from suppliers are indicative of diminished Big Three expectations about future sales.  Not to be underestimated is the impact that these drop-offs will have on suppliers.  Many of the Big Three’s overseas suppliers (132) were on Panjiva’s Watch List as of the end of January, as a result of suffering a 50% decline in volume shipped to U.S. customers in the most recent three month period versus the same period a year ago.  That’s about 16% of the Big Three’s overseas suppliers.

Those charged with assisting the auto industry are right to worry about the health of suppliers.  Even if consumer demand picks up, the Big Three will not survive if their supply chains disappear.  However, it’s not just domestic suppliers that are in trouble right now — overseas suppliers are in trouble too.

PDF: Panjiva Analysis of Big Three Imports

  1. Josh Green  ·  March 21, 2009

    A related post over at SpendMatters. Check it out:

    http://www.spendmatters.com/index.cfm/2009/3/20/Will-500-Auto-Suppliers-Fail-Before-Summer

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