By Sylviane de Saint-Seine, Automotive News Europe
Supplier associations say US-style â€œpay-to-playâ€ 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.
â€œI am not aware it’s a European…