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To: ild who wrote (28688)	4/27/2005 4:22:12 PM
From: TH	Respond to of 116555

ild, Our margin is not very fat at all, but this protection is required as we are LOCKED into supply for the life of the program. If we were to win a program award, and then refuse to supply, we would be OUT of the entire North American market for many years. News of that kind of behavior travels very, very fast, and it jumps party lines so Ford, GM, and Chrysler are all aware. My competition will make it known to everyone. Currency protection of this magnitude is recent. We have only started doing it for multiple years in the past 2.5 years. Please note, it was not really required before, as the dollar just got stronger every year. Now the game has changed, and we must protect what little margin we have. To my knowledge, the Japanese in my segment of the industry do not do this. My primary Japanese competitors have an excellent product, but they have exhibited a rather poor understanding of the North American system on several occasions. They demanded price relief in early 2004 and forced one customer to pay it. It was a beautiful thing for me, as that Japanese supplier is off that customers supply base listing for a very long time. My company will not make this mistake. It ain't cheap, but we MUST do it now. GT TH