Two more down

Visteon filed chapter 11 today. Visteon is parts supplier to Ford. Ford now has to help them out … or risk not being able to get sub-assemblies. This is not good for Ford, significantly increases the risk for them.
Metaldyne also filed. Metaldyne was a supplier to Chrysler. When Chrysler filed Chapter 11, well, suppliers won’t get paid for a while … if at all.

Metaldyne will sell chunks of itself off. Metaldyne is in Plymouth, right next door to Canton where we are. Visited there a few times. They had asked us for Net-75 terms a while ago.
Both organizations use HPC.
Remember that if the too-big-to-fail company is pushed through Chapter 11 in order to “save” the company, then the whole network around them is going to suffer. Badly in a number of cases.
I don’t expect Metaldyne to be the last. Nor do I expect it to be the noisiest implosion.

2 thoughts on “Two more down”

    • Even more than that … buggy whip makers suffered when they were no longer needed.
      Visteon and MetalDyne aren’t salt miners or buggy whip makers.
      Put another way, imagine an HPC company selling $20M of gear to Chrysler before they went Chapter 11. Would their parts suppliers be understanding?
      What I am saying is that when you have a large failure, you are going to have a large network of failures, often unrelated to the initial failing company. They will get dragged down with that company.

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