Supplier pressure increases as the big OEMs grow ever bigger

The big OEMs are getting even bigger and competition at the top is fierce, but the steady growth is sending suppliers scrambling to keep up. Constantine Biller, partner in industrials at Clearwater International, told Automotive World: “The fact that the larger OEM groups are selling more vehicles will naturally put more downward pressure on the supply chain. Automotive component suppliers therefore have to be prepared to follow their OEM customers, develop components and systems that are adaptable across various vehicle platforms, invest in their production capabilities and expand their geographic presence."