Question
Consider the make-or-buy decision faced by Superior Industries International, Inc., a big aluminum-wheel maker in California. For years, president Steve Borick had ignored the possibility
Consider the make-or-buy decision faced by Superior Industries International, Inc., a big aluminum-wheel maker in California. For years, president Steve Borick had ignored the possibility of Chinese manufacturing. Then Mr. Borick started getting a blunt message from General Motors and Ford, with who Superior does 85% of its business: Match the prices of Chinese wheel suppliers. Both auto makers said separately that if Superior could not agree to the lower prices, they would go directly to Chinese manufacturers or turn to other North American wheel-makers. What are the disadvantages of outsourcing to a foreign country? Do you agree with outsourcing? Why or why not.
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