With the increase in investment costs, automobile manufacturers are requesting suppliers to delay payment for components, which may present opportunities for suppliers. Over the past two to three years, automotive suppliers have been seeking price adjustments to combat rising costs of raw materials and labor. However, now, due to automobile manufacturers making large-scale investments in new technologies and other areas, more and more manufacturers are requesting suppliers to extend payment terms or directly delay payments. Companies like Ratliff have provided consulting services to a large number of component suppliers, and have reported receiving such requests. They see manufacturers possibly extending payment terms or even requesting payment to be deferred until next year. The main reason for this is the increase in manufacturers' investments in new technologies.
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