This shouldn’t be a surprise to anyone, but it does seem to be news to the folks in the parts industry. Yet again an industry is unable to adapt fast enough and market forces are forcing tramatic changes.
Last week the U.S. government declined an industry request for $8-$10 billion in addiitional bailout money. The auto industry task force said their role was not to prevent bankruptcies and that the parts industry needed to consolidate going forward.
Basically thinning the herd via starvation. Sounds cruel, but hopefully the industry will innovate and emerge stronger.