Big 3 to cut more suppliers

The purchasing chiefs of Detroit's reeling Big Three automakers offered a grim forecast for auto suppliers on Friday, saying more components manufacturers are likely to fail as U.S. auto sales plummet.

Speaking at the Center for Automotive Research's annual Management Briefing Seminars, the procurement executives also said their strategy was to reduce the number of suppliers they use and reward top performers.

Chrysler LLC purchasing chief John Campi is targeting a 25 percent reduction in supply chain costs within three years and plans to trim his supplier rolls. He noted that 50 percent of Chrysler's 800 suppliers together supply just 5 percent of its parts.

"We're going to get rid of those that are not core," he said, noting that the automaker could cut up to 100 of its largest 300 suppliers, while adding others. "We're going to look at every one."