Case Study

Outsourcing in the global automotive industry - Drivers, patterns, and lessons

25 pages
December 2004
Reference: IMD-6-0276

The automobile industry played a key role in the mass production, automation, lean manufacturing, and innovation of technology. The key role holds equally true for the important collaboration between original equipment manufacturers (OEMs) and their suppliers, and more specifically OEMs outsourcing to suppliers. In 2004, this outsourcing trend reached an all-time high, when content from suppliers accounted already for more than 60% of the manufacturing cost per vehicle and this number was estimated to further increase up to 75% within the next five years. This industry note critically shows trends and repercussions for OEMs as well as for suppliers.

Outsourcing, Original Equipment Manufacturer, Automotive, Production Management, Operations Management
As of 2004
Published Sources
© 2004
Available Languages
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