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  • Magazine Article
  • 17AUTP04_10
Published April 01, 2017 by SAE International in United States
  • English

The new Supplier Invasion

Significant changes are underway within the North American light vehicle supply infrastructure. Beyond the slow though steady shift of value and resources from ‘hard parts’ towards the softer side (electronics/mechatronics) of system supply, as well as the pressures impacting smaller, more regional suppliers there are other critical changes underway. Chief among these are the geographic and system expansion of the supply base into new directions.

An influx of China and India-based suppliers have been quietly setting up shop in North America-mainly in Mexico and the U.S. Their respective routes to these shores are not identical, though there are common traits. System technologies requiring high levels of capital, especially “patient” capital, are destinations for transplanted suppliers. These companies are thus far predominantly involved in glass, painted exterior components, castings and stampings.