More companies announcing plans to cut ties with problematic Chinese suppliers
Luxury car maker Aston Martin recently announced that it will be restructuring its supply chain in the aftermath of a series of problems with the Chinese manufacturers that it currently depends on for parts. Citing a 2007 incident involving lead paint, Businessweek contributor Christina Larson joked that the company, which is famous for having its sleek sports cars featured in the James Bond movies, now has the same problems as the toy Hot Wheels cars manufactured by Mattel.
Stories about the risks inherent in globe-spanning supply chains have been circulating for years, but Aston Martin has been forced to focus its attention on the topic as a result of a safety issue that recently emerged. The company explained its situation in a letter to the U.S. National Highway Traffic Safety Administration (NHTSA).
Engineering specifications developed by Aston Martin called for the use of a specific type of plastic in the molding of accelerator pedal arms. However, a Chinese manufacturer was apparently cutting corners and using cheaper material. As a result, the gas pedals were breaking during installation. Worldwide, Aston Martin has had to recall more than 17,000 vehicles -- almost 75 percent of the cars it has produced in the past six years, according to the Wall Street Journal.
In its letter to the NHTSA, the company indicated that it is planning to relocate its pedal arm manufacturing operations to a more reliable location "as soon as possible in 2014." Many other global brands are considering similar moves.
As more companies look to expand their operations in the United States to capitalize on the reliability of American manufacturers, businesses setting up shop in the Cleveland area should consider partnering with a local distribution services provider that has a proven track record managing complex supply chains.