Characteristics of the Automotive Supplier Industry

Automotive Supplier are a conglomerate of industrial sectors with OEMs as ultimate market. Today‘s OEMS are vertically integrated to approx. 20 - 38% which the suppliers complement with joint-developed on systems, modules and parts.

Some assemble on the assembly line or provide the complete application as a service including operating the system (e.g. paint shop) on the assembly line.

What are the constituents in Total Automotive Market of Automotive Supplier Industry?

• Vehicle traders
• OEMs (Original Equipment Manufacturers)
• Suppliers
• 1st tier
• 2nd tier
• 3rd tier
• ESP
• Carriers
• Aftermarket - Parts

What are the Characteristics of Automotive Supplier Industry?

• Just-In-Time deliveries
• Trend towards R&D and system suppliers
• Full transparency of the operation ´glasshouse supplier´
• All quotations have to be detailed
• High pressure on costs and continual demand on Performance and quality

Automotive Supplier Independent

• Legally independent
• Economically partly dependent
• Depending on size of the enterprise and orientation

Automotive Supplier owned by OEM's

• Legally dependent
• Economically dependent

Sizes of Suppliers in Automotive Supplier Industry

• Large enterprises
• Share of supplier sales insignificant
• Medium-sized firms
• Exclusively suppliers
• Large enterprises with several divisions
• Relatively high share of sales

What are the Differentiation Between Production Locations in Automotive Supplier Industry?

Global player

• Role of the enterprise
• Own independent enterprise (limited company)
• Own independent production
• Joint ventures
• Licenced production at another supplier‘s plant

Local player

• One location
• N locations with a certain area

What are the Differentiation Between Parts in Automotive Supplier Industry?

• Parts
• Chassis parts
• Motor parts
• Interior trim
• Paints
• Oils, greases

What are the Supplier Sectors of Automotive Supplier Industry?

• Textile
• Metal
• Steel
• Chemical
• Electrical
• Electronic
• Plastic
• MOT