Collins & Aikman reportedly seeks retroactive cuts from suppliers

Omnexus - Dec 17, 2002

TROY, MI, Dec. 17 -- Struggling auto supplier Collins & Aikman Corp. is retroactively cutting what it pays its suppliers by 5%, according to the Detroit Free Press. In letters sent over the last few months, the interior parts supplier warns suppliers the 5% cuts go back to all purchases since Jan. 1, 2002, the report said. It blames the cuts on cost-cutting pressure from automakers like the Chrysler Group and on its own financial problems. One letter dated Nov. 25, says the cuts are "part of Collins & Aikman's plan to meet fourth-quarter cost-reduction goals," the story said. According to documents attached to the letter, it was sent to about 225 suppliers that do less than $1 million a year in sales with Collins & Aikman. Many...

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