What happens to auto parts suppliers when car companies they supplied to get bought by another company?
Usually the auto parts supplier will remain the supplier. Through many years, the supplier builds relationships with management of the “old” company. The management team within the old company often finds itself part of the new. While executives and policies change, the business units generally are managed by someone with these ties.
Of course this is the positive side. On the negative, let’s say the new company decides to purchase and consolidate operations by shutting down one of the manufacturing plants. If this happens, the auto parts supplier generally loses if they are regional (i.e. smaller local supplier) rather than national where pricing structures have not been arranged.
Antique Auto Supply
