SUPPLIER EYE

Recent geopolitical events in Venezuela, Ukraine and other hot spots are a stark reminder that the long-term planning environment is fraught with challenges and opportunities that suppliers cannot control. The initiation of U.S. tariffs on its trading partners and various embargos also underscored that we have to be flexible in how we dole out capital and the risk we are assuming. The supply base is at the end of that chain. Any issues upstream will reverberate exponentially.

It is obvious that the automotive world is re-regionalizing, and quickly. Why the concern? Some context. Until the '70s, every region essentially rowed its own boat. While there were some exports from one major region to another, there were regional OEMs that were sponsored by national governments due to job creation, tax base considerations and bragging rights. The U.S, France, Italy, Germany, Japan, South Korea and a host of others wanted to build national OEMs that could drive scale and become a global force.