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A Profile of the Automobile and Motor Vehicle Industry by James M. Rubenstein

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CHAPTER 5

Outside Market Forces

The most important outside market force for carmakers is the prominent role played by the manufacturers of the roughly 15,000 parts that go into the assembly of vehicles. Also of importance are suppliers of commodities and raw materials. Relations between carmakers and their suppliers have changed considerably in recent years because suppliers have more responsibility in the design and manufacture of vehicles than they had in the past.

Suppliers of Parts

A company making parts primarily destined for installation in new vehicles is called an original equipment manufacturer (OEM). A company making parts sold primarily as replacements in older vehicles is known as an aftermarket supplier. OEMs are responsible for ...

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