Domestic Automakers Find U.S. Supply Chain Immature for Hybrid Production

But First Snide's Remarks - Suppliers supply what their customers want...so if the suppliers have something and someone to suppy they will supply them. What do you think? msnide@theautochannel.com.

Washington DC September 20, 2005; The AIADA newsletter reported that with more customers expected to move toward fuel-efficient vehicles due to high gas prices and environmental concerns, GM, Ford, and Chrysler are planning for a hybrid “shoot-out.”

But to stay on pace with U.S. demand for hybrids, Detroit automakers may have to look beyond the U.S. supply chain for parts and innovation, reports Dow Jones Newswire. “The (U.S.) supply chain is immature for hybrids," said Larry Nitz, executive director of GM’s hybrid program. "It’s going to take a number of years to get the supply chain completely mature."

Industry analysts say that because of the high manufacturing costs, profits from hybrids will remain elusive for the balance of the decade. Japanese suppliers currently turn out most of the world’s hybrid parts, and a handful of other Japanese suppliers tied to the country’s large automakers, invest in other hybrid technologies on the guarantee of future business, according to Lindsay Brooke, an auto market analyst with CSM Worldwide Inc.