Sourcing trends in the car industry

Abstract

Intense competition and structural changes characterize the car industry. Several trends (i.e. general changes over time) concerning sourcing strategies and supplier relations can therefore be identified. The article aims to analyze how these trends correspond to the actual situation in the car industry. Based on a survey answered by both car manufacturers and first tier suppliers, this article provides facts and analyses regarding sourcing‐related trends over the past decade as well as some future predictions. The results show that both car manufacturers and suppliers continue to reduce product development time. They also increase supplier involvement in product development and the share of inbound JIT‐deliveries. However, while suppliers increase their outsourcing and globalization of production and product development activities, car manufacturers do not. Only some of the identified sourcing‐related trends are actually supported by the presented results. Hence, this article modulates the picture of the current development within the car industry.