rbattelle
TDR MEMBER
Last week's Automotive News has an article that Lear, which has provided Ram interiors including seats and dashboards since 1994, will lose its contract with the re-design in 2009. The new contract goes to Johnson Controls and Visteon, who will each be taking different aspects of the interior. There's still a slim chance that Johnson or Visteon will sub-contract some items to Lear.
The rumor is that this is backlash on DC's part for Lear demanding price increases and threatening to stop production last year. DC sued them (successfully) to hold them to their original pricing contracts. Lear posted $1. 3 billion in losses last year. Of course, the DC spokesman claimed "we are not vindictive", but what about the rumored "punishing" of Dana in 2002 over arguments with the Jeep Grand Cherokee axles? [As an aside, Dana's doing very poorly while AAM seems to be doing extremely well despite a poor 4th quarter].
Visteon is in bad shape (let's face it, all suppliers are). I think Johnson Controls is doing "okay", at least relative to the rest of the supplier base. I think it will be very interesting to see what the new interiors will be like with new manufacturers. Also note that they will operate under DC's new supplier cooperation strategy they announced last year, wherein suppliers are brought in very early in the design process. Should be interesting.
Also note that the re-design will occur in 2008 for the 2009 MY. Does that mean, perhaps, that rumors of the venerable B5. 9 being replaced by a 6. 7L engine in 2007 are false? Perhaps they'll not replace the 5. 9 until the redesign in 2009?
-Ryan
The rumor is that this is backlash on DC's part for Lear demanding price increases and threatening to stop production last year. DC sued them (successfully) to hold them to their original pricing contracts. Lear posted $1. 3 billion in losses last year. Of course, the DC spokesman claimed "we are not vindictive", but what about the rumored "punishing" of Dana in 2002 over arguments with the Jeep Grand Cherokee axles? [As an aside, Dana's doing very poorly while AAM seems to be doing extremely well despite a poor 4th quarter].
Visteon is in bad shape (let's face it, all suppliers are). I think Johnson Controls is doing "okay", at least relative to the rest of the supplier base. I think it will be very interesting to see what the new interiors will be like with new manufacturers. Also note that they will operate under DC's new supplier cooperation strategy they announced last year, wherein suppliers are brought in very early in the design process. Should be interesting.
Also note that the re-design will occur in 2008 for the 2009 MY. Does that mean, perhaps, that rumors of the venerable B5. 9 being replaced by a 6. 7L engine in 2007 are false? Perhaps they'll not replace the 5. 9 until the redesign in 2009?
-Ryan