Abstract
Report Overview
The last few months have underlined the importance of the OEM customer base of
each supplier for medium- and long-term strategic success. This report, as a
part of the Supplying OEMs series, provides guidance and insight into the
OEM' s strategic position on the purchasing side.
- OEM' s current standing
- Production strategy (Locations, Platforms,etc)
- Procurement spending and organisation
- Levels of vertical integration
- Biases in supplier selection
- Business practices regarding pricing and quality
- R&D Spending and focusings
- Modules and systems outsourcing policy
- Forward Model Programs
- SWOT Analysis of Supplying the OEM
After having provided an overview on the current standing of the OEM with
regards to various aspects including sales, financial performance, product
line-up and the macroeconomic environment, the report analyses the production
strategy of the car maker going through the operations, revealing where
volumes are expected to occur at a geographical and program level and
deciphering the car maker' s platform strategy. The core topic is the analysis
of the car maker' s purchasing strategy with a focus on the most critical areas
of the interface with its supply base involving supplier selection, price
policy, quality approach, R&D and modules and systems.
Based on original research and SupplierBusiness' well- established surveys of
working experiences with OEMs over the last few years, the report also
provides the opportunity to grasp how current suppliers rate OEMs about a
complete range of aspects that really matter to the supply base.
The report includes the SWOT analysis of supplying the OEM along with IHS
Global Insight' s much respected Forward Model Programs and a list of the major
suppliers by component sector.
Thanks to its added value and unique insight, the report is a must for those
suppliers looking to re- optimise their customer portfolio in light of the
major changes currently underway in the global automotive sector.
Background to this research
After having completed one of the most challenging turnarounds in automotive
history, Fiat now is benefitting from scrapping schemes thanks to the strong
bias of its product portfolio towards lower segments of the market. Fiat' s
supremo, Sergio Marchionne has been hunting for bargains and was able to
finalise an alliance with bankrupt Chrysler. The Italian automaker now has to
address several critical issues, including the turnaround of its North
American partner and the rationalisation of production facilities in Italy.
In addition it must refresh its product portfolio, despite development delays
as a result of the economic downturn.
On the purchasing side, major changes have been evident to Fiat' s strategy
since it dissolved its joint-venture with GM. The "Global Sourcing" approach,
one of the central planks of the car maker' s approach to procurement in the
GM-Fiat era, has been effectively replaced by global partnerships with those
suppliers which are able to supply Fiat plants worldwide and are willing to
expand their footprint to best-cost countries when needed. Fiat' s relations
with suppliers have improved significantly and suppliers acknowledge Fiat is a
much more attractive car maker compared to three years ago. However some old
bad habits remain - in areas such as payment terms and quality, for example.
As a special feature this report includes a special section focused on the
recent alliance with Chrysler and on the potential implications this could
have on the traditional supply base of the Italian car maker as well as on the
North American supply base.
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