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.