Why manufacturers and suppliers need mediators

Production of electric vehicles at Volkswagen

Car manufacturers are skeptical as to whether all of the cost increases cited by suppliers are justified.

(Photo: IMAGO/Kirchner Media)

Dusseldorf, Stuttgart The difficult relationship between automakers and auto suppliers is as old as the industry. As is often the case with older couples, unresolved conflicts undermine mutual trust. It’s usually about money, delivery reliability or quality. But the conflicts have never been greater than they are now.

After more than two years, in which Corona, a lack of chips and rising raw material prices dominated the everyday business of car manufacturers and suppliers, the relationship between the two parties is particularly bad. This shows the current contract round, which is in the hot phase, as the Handelsblatt learned from industry circles. The conditions of the supply contracts for the current year will be fixed by the end of the first quarter.

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