While the 2008-2010 decline in the automotive industry occurred rapidly and was perceived by many participants as a surprise fall from a cliff, the cracks in the pavement were apparent well in advance of the collapse. In fact, months before the cascade started, certain observers pointed to the general economic conditions, rising oil prices and the extreme over capacity in the supply base while predicting the industry was about to hit a wall. Some suppliers realized the temperature of the water was rising. They consolidated, conserved cash, found better sources of supply and employed other strategies. These companies survived the downturn and reaped profits as the industry rebounded to record levels.
By Lindsay Griffiths on Fri, 03 Aug, 2018
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