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| Topic | Tesla Asks Suppliers for Cash Back to Help Turn a Profit |
| FLUFFYGERM 07/23/18 12:23:02 PM #15: | https://www.bloomberg.com/news/articles/2018-07-23/tesla-asks-suppliers-for-refunds-to-help-turn-a-profit-wsj-says The U.S. auto manufacturer declined to comment on the specific memo, but confirmed its seeking price reductions from suppliers for projects, some of which go back to 2016, according to the report. Tesla called such requests a standard part of procurement negotiations to improve its competitive advantage, especially as it increases Model 3 production, the Journal said. Its not clear how many suppliers were asked to hand back money, with some saying they werent aware of the request, the newspaper said. Panasonic Corp, Magna International Inc, Continental AG and Robert Bosch GmbH are among Teslas suppliers, according to data compiled by Bloomberg. Its not so unusual for carmakers to ask suppliers for discounts retroactively, and some Japanese automakers have done it before, said Tatsuo Yoshida, an analyst at Sawakami Asset Management Inc. in Tokyo, who worked at Nissan Motor Co. between 1983 and 1999. Tesla probably has some leverage to gain suppliers support, given that the type of parts it uses is probably a bit different from other automakers and it may even be the only customer in some cases, said Koji Endo, an auto analyst at SBI Securities Co. in Tokyo. If Tesla goes bankrupt, those suppliers lose everything. --- Do good. Eat communists. ... Copied to Clipboard! |
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