OEMs’ sourcing, investment, and production strategies are molded by a complex mix of interdependent factors, ranging from the outlook of local demand, trade tariffs, and supply base availability to OEMs’ technological and platform strategies. As the supply base becomes increasingly global, new opportunities are emerging for OEMs to optimize their sourcing cost structure by tapping suppliers in cost-competitive countries. In addition, the deployment of new modular vehicle platforms creates significant economies of scale for OEMs. This affects current sourcing structures, raising the risks for suppliers to win big or lose big, and even threatens the very existence of some component manufacturers.
IHS Automotive’s OEM Strategy Service provides insight, context, data, and analytics on OEM sourcing and production strategies and analysis of local supply base development in various regions and countries.
The OEM Strategy Service is part of a suite of vehicle contenting services. Delivered through SupplierInsight, an IHS Automotive strategy and planning solution, the service provides a view into current automotive trends and future demand through