European suppliers don’t ‘pay-to-play’

By Sylviane de Saint-Seine, Automotive News Europe

Supplier associations say US-style “pay-to-play” schemes have failed in Europe because partsmakers refuse requests for cash advances to land long-term contracts.

In a typical pay-to-play scheme, a Tier 1 supplier or automaker asks a partsmaker to make an immediate cash payment equal to future savings from productivity gains anticipated over the life of a multi-year contract.

General Motors, Visteon and Delphi are among US companies that have in the past done this.

“I am not aware it’s a European…

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