Browse Publications Technical Papers 2000-05-0227

Future trends in technical and strategical relationships among OEMs and suppliers~Reshaping the automotive industry 2000-05-0227

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.


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