Automotive Design and Production

JUL 2014

Automotive Design & Production is the one media brand invested in delivering your message in print, online, via email, and in-person to the right automotive industry professionals at the right time.

Issue link: https://adp.epubxp.com/i/335957

Contents of this Issue

Navigation

Page 17 of 52

13 own procurement with little con- sideration for global scale. This began to change during last decade as several suppliers that wanted to stay regional in scope were forced to go global and follow their customers. Just when you thought that many Tier 1 and 2 component suppliers read the memo about having to cover several regions to follow their customers, it seems that a few were able to fy under the radar and escape the pressure. Given the increasing complexity of future designs, the need for scale econo- mies, the hesitation for OEMs to add the burden of working with multiple suppliers on the same component, and the need to react faster to market forces, OEMs started 'persuading' suppliers to support build or design outside their traditional region. Suppliers have answered the glo- balization challenge with several solutions: Options range from read- ing the tea leaves and selling to a larger competitor; seeking manu- facturing or R&D; alliances with competitors in other regions to support design occurring elsewhere; or biting the bullet and carefully expanding the breadth of the man- ufacturing and Engineering/R&D; support to other regions to follow customers. Increasingly, Tier 2 sup- pliers are joining the parade of sup- pliers requiring a global footprint. How was the pressure for suppliers to globalize determined? While each OEM and segment was on a separate timeline, the pecking order was frst determined by those components/systems where scale economies and technology and integration demands dictated substantial savings. Major interior systems such as seats, instrument panels, door panels, and overhead systems led the way. Others included suspension, electronics, fuel, drive- line and steering systems, where close OEM-supplier coordination is critical. Other systems followed, leaving relatively few opportuni- ties to be a true 'regional' supplier. Intertwined in the increased pen- etration of global platforms is the drive to reduce supplier count and 0714ADP Insights -- Digital Version.indd 13 6/17/2014 1:12:09 PM

Articles in this issue

Archives of this issue

view archives of Automotive Design and Production - JUL 2014