Many articles have been written about the demise of the relationship between automotive manufacturers and suppliers. Evidence of this demise is seen in the steadily increasing frequency of bankruptcies. Suppliers are also directed to achieve cost reductions of 5% every year or potentially lose important business. These issues, combined with a potential slowdown in automotive sales, are forcing both suppliers and manufacturers to develop new business models. These models have the challenging task of improving the profitability of the business while continuing the drive toward higher quality at lower cost.
Over the last five years, a new business model has been gaining momentum overseas. From Brazil to France, successful supplier-owned and -operated facilities for car bodies and parts have proven viable. The most successful cases have been created within a supplier park setting where only the final assembly of the vehicle is performed by the automotive manufacturer. In this example, the body shop, body painting, plastic parts and major assemblies are delivered just-in-time and in sequence to point-of-use in assembly by supplier-owned and -operated facilities.