Visteon has decided not to pursue a "pay to play" strategy to help reduce its supplier ranks.
Instead, Visteon is taking quotations online as projects come up and will award business to its strongest suppliers across all segments, said Jonathan Maples, Visteon's purchasing chief.
The pay to play strategy was contained in documents sent to plastic injection molders early this year, seeking bids on large groups of parts for five-year contracts. Visteon told those suppliers the proposals must include a minimum 6 percent annual price reduction, with an upfront check for the first year's savings plus a part of future years' savings to equal at least 10 percent of the value of the contract's first year.
The request was not well received by some molders, who were concerned that they couldn't afford to do business with Visteon.