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Modularity, industrial condominiums and modular consortium: A new form of organization of the production chain in the Brazilian automotive industry
Technical Paper
2000-05-0218
Sector:
Language:
English
Abstract
Assembler-suppliers relations in the automobile industry have
been structurally transformed. Brazil is the home of the most
radical experience, the modular consortium at VW Resende truck
plant, where suppliers carry out all assembly operations. Almost
all the major players have already facilities in the country, and
newcomers are setting it attracted by a large potential market in a
well-known, western-style business environment.
Based on a research conducted in eight assembly plants in Brazil
(7 industrial condominiums and 1 modular consortium) and in several
suppliers, the paper aims to discuss the transformations and trends
of assembler-suppliers relations by analyzing the dynamic frontrun.
Brazil as pointed out above, is a key case, even in terms of
product development ("emerging markets car," like Fiat
Palio and General Motors Corporation Blue Macaw). The definition of
industrial condominium and modular consortium is discussed; these
arrangements are different from "industrial parks" and
from the Japanese way of relationship (inside a keiretsu). Then, we
argue that an industrial condominium is characterized mainly as a
service relation: a) resolution of quality problems; b) to cope
with changes in scheduling due to vulnerabilities of the
assembler''s operations/forecast; c) ideas for continuous
improvement.