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Future trends in technical and strategical relationships among OEMs and suppliers~Reshaping the automotive industry
Technical Paper
2000-05-0227
Sector:
Language:
English
Abstract
Maturing markets, increasing price competition and the need for
innovation have triggered continuous change in the relationship
between automotive manufacturers and their suppliers over the past
years. The restructuring of the industry was specially fueled by an
increasing trend towards outsourcing of modulus and systems. Roland
Berger & Partners International Management Consultants and
Gelsenkirchen University of Applied Sciences conducted a study to
identify the major trends in the automotive manufacturer (OEM) and
supplier industry over the next 5 to 10 years. The study is based
on 70 expert interviews with companies based in Europe, Japan and
USA.
Automotive market growth in the next decade will mainly come
from the emerging markets of Eastern Europe, South America, China
and Southeast Asia, while the "traditional" triad markets
are expected to stagnate long-term. The concentration process among
automobile manufacturers will lead to some eight independent OEMs
in 2010.
Globalization will receive increasing importance in the supplier
industry, Cost pressure on the suppliers continues and will be
complemented by risk- sharing with the OEMs. Driven by increasing
pressure for globalization, rationalization and risk taking, the
supplier industry is expected to further consolidate.
The share of platform-based vehicles will further grow, combined
with an increasing model variety. Innovation becomes a major growth
driver for many suppliers, as they take the technological lead.
Outsourcing will further grow, along with more intense forms of
partnerships between OEMs and suppliers, as suppliers take over
more comprehensive responsibilities for the complete process chain.
Global standardization of R&D and quality standards receives an
increasing importance. However, suppliers still lack many of those
capabilities which are necessary to become system integrators. To
ensure future profitability and growth, suppliers, consider a
number of key measures to be taken. Altogether, eight mega-trends
characterize the automotive supplier industry in the next
decade.