Hacker News new | ask | show | jobs
by mywittyname 1886 days ago
>being allowed to screw their suppliers for billions through bankruptcy (GM).

This is 100% of the issue. Those other two are issues with large business in general (tax breaks) or car dealerships (who pushed c4c).

The Big Three have been able to run their suppliers ragged through collusion because, for many suppliers, all they produce are car parts sold to The Big Three. Which means their production figures, profit margins, and general growth are completely at the whims of automakers. The few critical suppliers with a chance to get out of the industry are acquired.

The Big Three are learning the hard way that they don't have the kind of influence over chip makers that they do over their other suppliers.