Global Component Sourcing: A Comparison of U.S. and Overseas Supplier Relations

Supplier relations are a critical area for auto manufacturers as supply base consolidation and coordination is implemented while new overseas production is being developed. Domestic auto producers are now encouraging their suppliers to follow them into new areas of growth. However, in many cases these firms have limited ability to undertake such expansion. This paper compares the views of members of a supplier industry, powder metallurgy (P/M) part producers, and those of automobile engineers and purchasing agents involved with the powder metallurgy technology. Results are discussed in terms of potential new relationships among suppliers to facilitate overseas expansion.