The head of Toyota ‘s US sales arm has warned the Obama administration’s auto industry task force that the company is ‘seriously concerned’ about the financial health of a substantial number of its parts suppliers.
Jim Lentz, president of Toyota Motor Sales USA , met with members of the administration’s task force for about 30 minutes, saying that as many as 100 companies that provide auto parts to Toyota are entering a crucial period that could determine whether some survive, Dow Jones reported. He said he was particularly worried about 20 to 30 within that group, but he did not identify them.
“The biggest challenge we face is really on the supplier side,” Lentz said after the task force meeting, Dow Jones reported.
Magna CEO Don Walker recently said that 25-30% of suppliers could go under in the current downturn, but that he expects ‘orderly restructuring’.
