Subscribe free to our newsletters via your
. 24/7 Space News .




CAR TECH
Automakers, suppliers rethink relations to survive crisis
by Staff Writers
Frankfurt (AFP) Sept 15, 2011


Relations between automakers and their suppliers have never been easy, but the economic crisis is forcing major changes as both sides shape up to survive future storms, analysts say.

In the past, the balance of power was simple: it was the global automakers who tended to call the shots over the small-to-medium-sized companies producing the thousands of components that go into making the final product.

In fact, as much as 50 percent of a finished car is currently made up of parts supplied by small independent -- frequently family-run -- businesses and which account for as much as 75 percent of its final value.

Nevertheless, the last global crisis forced many smaller parts makers to shut up shop, leaving the mighty car manufacturers high and dry without crucial components and bringing production at their vast assembly plants to a standstill.

As a result, the two sides are rethinking ways of working together, according to Laurent Hebenstreit, member of the executive committee of Plastic Omnium, a major French parts suppler.

"Carmakers realised they were very dependent on their suppliers and parts makers and that they would have to work together much more closely," he said.

"Manufacturers tended to be rather despotic towards their suppliers, effectively using them as some sort of buffer against the crisis," said IHS Global Insight analyst Carlos da Silva.

In a bid to help balance out the situation in France, the powers-that-be initiated a special body that laid down a code of conduct between automakers and their suppliers and -- with the financial support of Renault and PSA Peugeot Citroen -- established two funds to help parts suppliers in difficulty.

As a result, some specialist branches, such as sheet-metal forming, have been stabilised and even received a boost, said Yannick Bezard, head of procurement at PSA Peugeot Citroen.

If there were a new crisis, "they'll be in a position to survive."

Nevertheless, other areas such as foundries remained vulnerable, Bezard added.

All these measures were not, however, able to avert new shortages for carmakers earlier this year when the devastating earthquake and tsunami in Japan halted production of components and pigments used in the industry all over the world.

This highlighted the problem of dependency on a single supplier and for Peter Tyroller, marketing and sales chief at Bosch, "this will affect supply strategies in the future."

Events have made relations between automakers and components manufacturers "more transparent," according to Bosch chief executive Franz Fehrenbach.

Hebenstreit of Plastic Omnium agreed, saying developments triggered alarm bells at the carmakers.

"It cost them a lot of money and they won't want it to happen again," he said.

Polk analyst Bertrand Rakoto was sceptical, however, whether the lessons had really been learned.

"There is a semblance of partnership, but both sides are still trying to cheat each other, too," he said.

.


Related Links
Car Technology at SpaceMart.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








CAR TECH
Carmakers turn to green energy for assembly plants
Frankfurt (AFP) Sept 14, 2011
Wind turbines and solar panels are fast becoming familiar sights at car assembly plants as automakers slash carbon emissions not only of the models they produce, but along the whole production chain. "There'd be little sense in cutting the CO2 emissions of our cars to zero if we're pumping out tonnes more of the gas to build them," said Christian Mohrdieck, director for fuel cell and battery ... read more


CAR TECH
United Launch Alliance Launches GRAIL Spacecrafts To Moon

NASA launches twin spacecraft to study Moon's core

Second bid to launch NASA's Moon-bound spacecraft

NASA to launch Moon-bound twin spacecraft

CAR TECH
Opportunity Inspects Next Rock at Endeavour

Opportunity Continues Early Exploration Of Endeavour Crater Rim

Memorial Image Taken on Mars on September 11, 2011

Methane Debate Splits Mars Community

CAR TECH
Virgin aims for first space launch within 12 months

Statement on Importance of Supporting Planetary Exploration

NASA Offers Shuttle Tiles And Space Food To Schools And Universities

Russia delays commercial space launches after crash

CAR TECH
Tiangong 1 might be launched in late September

Chang'e-2 moon orbiter travels around L2 in outer space

China State media says Tiangong 1 to launch in early Sept

Time Limits for Tiangong

CAR TECH
Russia announces launch of 2 spacecraft in Oct-Nov

Three ISS crew members scheduled to return on Friday

Russia sets first post-crash manned flight for November

NASA Sits Tight as Unmanned Space Station Considered

CAR TECH
NASA unveils new launcher design for Mars missions

First Galileo satellite touches down in French Guiana

European satellite in French Guiana launch

Arianespace to launch Amazonas-3 for Hispasat

CAR TECH
Astronomers find extreme weather on an alien world

Latest Exoplanet Haul Includes Super Earth At Habitat Zone Edge

Invisible World Discovered

The diamond planet

CAR TECH
Terahertz radiation's impact on cellular function and gene expression

Google, publishers near settlement in books case

Apple under fire over China university outlet

Lockheed Martin Awarded Contract to Upgrade US Army Advanced Gunnery Training Systems




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement