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I heard a story recently about a Caterpillar vehicle being made in Mexico. Headquarters couldn't figure out why the BOM was costing so much, so they flew an en

by swamp40 13y ago

I heard a story recently about a Caterpillar vehicle being made in Mexico. Headquarters couldn't figure out why the BOM was costing so much, so they flew an engineer down there to figure out what the problem was. Turns out most of the locally sourced parts and raw materials were being purchased at a significant premium - from friends of some of the local managers.

walshemj 13y ago
That's a common scam in large companys a while back I did the course in handling discipline cases in BT (a large telco) and the course tutor commented that corruption in letting relatively small contracts was the most common form of fruad/corruption. Ie. giving a contract for small civil engineering works to your mate for kickbacks. Of course in Mexico you run the risk of ending up dead if you dont go along with the scam.