Foley & Lardner LLP Partner John Trentacosta was quoted in The Wall Street Journal article, “It Was a Pretty Good Year in the Car Business – Except for Suppliers,” about the myriad of cost pressures that auto-parts suppliers face. Raw material prices and labor costs have soared, but now suppliers are wondering how to offset these cost increases as they navigate contract negotiations with car companies and the supply chain shortages.
Trentacosta is chair of Foley’s Complex Supply Chain Litigation Group. He says, “Tension over who will shoulder the escalating costs is mounting. Smaller, cash-strapped suppliers are increasingly refusing to ship parts unless they get a price increase. For a lot of them, it’s desperado time.”