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…

To read more,please login or register below.

Register
This is the first step to more free
content, user offers, subscriptions
and more.
Login
Log in here using the Email Address
and Password you signed up with