As the Chapter 11 filings pile up, carmakers want to know a lot more about their suppliers' financial health.
"OEMs are much more conscious of the financial health of their supply base, not just Tier 1, but Tier 2 and Tier 3," says Magna President Mark Hogan.
It's not just a knee-jerk reaction to Delphi Corp.'s bankruptcy, he says: "It was picking up over the last six to nine months."
The added scrutiny plays out at Magna in two ways. If a carmaker directs Magna, as a Tier 1 supplier, to use a specific Tier 2 supplier, "We go back and say we want to make sure you are satisfied" with the Tier 2's financial stability, Hogan says. "If it's our choice, we definitely want to know" the supplier is financially secure.