Shares of automotive parts supplier Collins & Aikman tumbled 32% on Friday after a newspaper reported its largest customer, DaimlerChrysler, would offer business to the supplier’s rivals, Reuters reported.
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The Detroit Free Press, citing an unnamed Chrysler official, reported that the more than $US1 billion in current and future business Collins & Aikman conducts with Chrysler will be offered up to competitors, Reuters said.
Reuters said the Free Press quoted an unnamed Chrysler official who said, “Collins & Aikman is probably our worst supplier.”
Troy, Michigan-based Collins & Aikman, which had net sales of $3.9 billion last year, is headed by David Stockman, the former budget director in former President Ronald Reagan’s administration, the news agency noted.
According to Reuters, Stockman told the Free Press that the report of Chrysler offering up its business to other suppliers is “flat wrong”, however, an unnamed Chrysler official told the newspaper “that’s exactly what we are now doing or will be doing.”
Collins & Aikman shares fell $1.19 to $2.54 in early trade on the New York Stock Exchange, Reuters said.
