Tag: parts

By on May 11, 2015

gm_hq

If you’re a parts supplier to General Motors, you have two choices: bid for business as it comes up or open your books and factories to skip the bidding process.

According to Automotive News, the latter option is part of GM’s One Cost Model launched in 2013, allowing the automaker to analyse a supplier’s internal cost data to identify cost-cutting opportunities. In exchange, suppliers can receive exclusive parts contracts that can last the lifecycle of a model and GM will not put that particular piece of business up for bid.

This all requires a significant amount of trust from suppliers, a commodity which has been lacking at GM since the ’90s.

(Read More…)

By on April 1, 2015

95% Subaru, 5% Saab…100% Awesome?

Adam writes:

Hello Sajeev, I have a classic “keep it or sell it” question for you and the greater TTAC audience. (Read More…)

By on February 23, 2015

 

HL_B5_E39_97_DP_A_BLK_PLUS_UHP_LED_W_PLUS_HID_G

Obligatory E39 Photo. (photo courtesy: bimmerforums.com)

John writes:

Hi Sajeev!

I’m still only three years into the car business and I still haven’t wrapped my brain around one thing: xenon headlamps. As a used car manager I’ve replaced plenty of xenon bulbs (pricey) and even some ballasts (really pricey).

Are you sold on their usefulness? To me it seems like a giant waste of money.

(Read More…)

By on July 7, 2013

electronic-parts-catalogue

1,200 BMWs are sitting at German dealers and cannot be repaired.  The reason: Missing parts. After a software change in BMW’s German parts distribution system, supply with needed parts has become sporadic and unpredictable, Automobilwoche [sub] says. BMW works council chief Manfred Schoch blames cost cuts by BMW’s management:

“There were other solutions, but they wanted to save money. Now it will be getting three times as expensive.”

BMW has started to provide customers with replacement cars. Even that cause problems. “If people want to go on vacation in a Touring, and they are given a sedan, they won’t be happy,” a dealer told Automobilwoche.

A BMW spokesman confirmed the backlog to Reuters, but said the situation is improving.

By on February 20, 2013

A parts shortage has resulted in a shutdown at Chrysler’s Windsor Assembly Plant, home of the Dodge Grand Caravan and Chrysler Town & Country.

(Read More…)

By on February 4, 2013
YouTube Preview Image

Local propaganda almost always serves to screw the little guy. With rare exception, it never fails to do so.

We need a new stadium!”, cries the billionaire whose team already got one just two decades go. “Please pay for it John Q Public!”

“Hey! What about me?”, screams the local electric company CEO. “We really need to double the monthly service charge for our  local residents to manage our costs. But let’s also throw in a double digit rate reduction for those who use a lot of energy. Like the billionaire and his businesses. After all, they create the jobs out here!”

And the story drones on. The trash company that owns a multitude of companies that have virtually nothing to do with trash, wants to hike your bill.  Because they need to hit their numbers. Just like everybody else.  The insurance company. The gas company. The local government. The state government. Heck, every local monopolist and oligopoly is thrusting their well oiled lobbyist machines right at your shrinking wallet.

Guess who else is doing it now? The auto parts stores.

(Read More…)

By on January 31, 2013

NOTE: I received the following email from Saab Automobile Parts North America. As I was not aware of the recent details behind Saab’s parts/service operation (my bad) I felt obligated to share this, unedited, with everyone. – SM

Sajeev,

We read, with great interest, your latest Piston Slap post and the many comments in response to “The Last Saab = good Deal?” We wanted to take this opportunity to let you know about Saab Automobile Parts North America, the exclusive authorized provider of Saab Genuine Parts in North America. Venues like yours help us to get the message out that Saab Genuine Parts and Service are available. (Read More…)

By on October 24, 2012

After a lot of he loves me, he loves me not, GM and Peugeot PSA finally took their fledgling 7 percent relationship a few concrete steps forward. At least on paper. GM and PSA will not just buy new parts together. They will share platforms, the key to make joint purchasing work. The timing of this announcement, coinciding with a bailout by the French government, however is a bit unfortunate. (Read More…)

By on October 22, 2012

The great October surprise announcement of progress at GM’s Opel front is turning into an October letdown. What will be announced “this month, early next month” will be a joint purchasing agreement between GM and 7 percent partner PSA Peugeot Citroen, GM CEO Dan Akerson told Reuters ahead of the Sao Paulo Auto Show’s media preview.  In the industry, the joint purchasing agreement is seen as a non-event.
(Read More…)

By on October 5, 2012

We’ve been told again and again that pooled parts purchasing produces profits. Baloney, Opel interim-chief Thomas Sedran will say in an interview that Germany’s Tagesspiegel will publish tomorrow. He says something GM customers have known for a while: Parts from GM’s bin often are too expensive, and by sourcing them elsewhere, one can save a lot of money. “We are talking a significant order of magnitude,” Sedran will say tomorrow. (Read More…)

Recent Comments

New Car Research

Get a Free Dealer Quote

Staff

  • Contributing Writers

  • Jack Baruth, United States
  • Brendan McAleer, Canada
  • Marcelo De Vasconcellos, Brazil
  • Vojta Dobes, Czech Republic
  • Matthias Gasnier, Australia
  • W. Christian 'Mental' Ward, United States
  • Cameron Aubernon, United States
  • J Emerson, United States