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|*[[Magna International (MGA)]] and [[Johnson Controls (JCI)]] both depend on the Big 3 for a large portion (almost 40-50%) of auto interior component sales.||*[[Magna International (MGA)]] and [[Johnson Controls (JCI)]] both depend on the Big 3 for a large portion (almost 40-50%) of auto interior component sales.|
|*[[Cooper Tire & Rubber Company (CTB)]] and [[Goodyear Tire & Rubber Company (GT)]] are examples of tire companies who are also affected by the Big 3's decline. CTB is particularly hard hit, since nearly all of its business comes from North America and the Big 3.||*[[Cooper Tire & Rubber Company (CTB)]] and [[Goodyear Tire & Rubber Company (GT)]] are examples of tire companies who are also affected by the Big 3's decline. CTB is particularly hard hit, since nearly all of its business comes from North America and the Big 3.|
|+||*Auto-retailers like [[AutoNation (AN)]], who derive a substantial portion of their revenue from sales of Big Three autos.|
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|This article describes a concept which could impact a variety of companies, countries or industries. To see what companies and articles reference this concept page, click here.|
In recent years, the recurring troubles of the American Big 3 automakers have been coming to a head. General Motors (GM), Ford, and Daimler Chrysler AG face a host of problems. Legacy costs inherited from past manufacturing heydays in the form of costly pension and health care plans for retired employees add up to hundreds of billions of dollars. Unappealing gas-guzzler product lines that are a step behind current auto buying trends aren't driving strong earnings, either; instead, the Big 3 are trying to pad flagging normal sales rates with price incentives. Finally, continuing tussles with the United Auto Workers make it hard to cut costs and downsize to profitability. Meanwhile, Asian and European competitors are rapidly outstripping these traditional auto manufacturing powerhouses.
The Big 3 auto woes strike North American auto components manufacturers particularly hard, and hit in more than one way. Reductions in production volume and capacity will obviously decrease sales for the parts suppliers, but spending cuts within the Big 3 infrastructure also translate into decreased earnings for suppliers.