Parts manufacturers face a new risk as the OEM's become leaner and more decisive in their new vehicle strategy - downsizing of program volumes. While this in itself is not a new risk (manufacturers have long had to adjust to the realities of decreased production volumes), the new reality has brought forward the possibility of volumes being greatly reduced based on corporate strategy vs. market demand. Take for example the recent decision of General Motors to not sell the new Chevrolet Orlando in the USA, but keeping it alive for foreign markets (including Canada). By doing this, parts suppliers now have to meet their supply obligations/schedule, yet have a smaller production run over which to recoup their CAPEX. Obviously the worst case scenario would be an outright cancellation - hopefully these are few and far between!

 It would be interesting to hear how companies are addressing this scenario in the new automotive world - would welcome any discussion on the point…