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The current state of commercial relationships: a look back at better days and some thoughts about what we may find in the future.

Article Excerpt
As we prepare to conduct the seventh biennial IRN survey on price reduction requests, we have some theories and some questions about what the results will reveal. The context has certainly changed since our last survey of the supply base in 2007. North American light vehicle production that year was 15 million units. U.S. sales were 16.1 million. Not to get all moist-eyed and nostalgic, but things were pretty good! Even in terms of pressure for price reductions, the 2007 survey results were somewhat encouraging. The average percentage pricedown requested by customers had declined significantly to 4.6%, and component suppliers were coalescing around an average figure of 2% as a doable giveback. DaimlerChrysler and GM, the most aggressive customers in the 2005 survey, had mellowed out, leaving Ford and some Tier Ones as "Most Likely to Strong-arm the Supplier."...

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