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Automotive Industry worldwide: Major trends in the automotive sector and its composition.

In the first instance, we must emphasize that the auto industry has favored the momentum of the steel, metallurgical, metallurgy, mining, petroleum, petrochemical, plastic, glass, electricity, robotics, and computer used in cars or production thereof .

Thus, the automotive sector is composed of different actors, among which stands out and focus the analysis for the development of the research work in the auto parts firms producers (original equipment parts, and assembly and subassemblies ), which are suppliers of automotive terminals (considered core of the plot as they are imposed firms productive chain standards) internationally. Then the auto parts industry by the (or assembler) terminal industry, are the two main branches of specialization that make the automotive industry, for this reason, they are very important for this research.

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Over the past 20 years, there has been an accelerated process of changing roles and responsibilities in the automotive value chain, aimed at preserving the terminal industry activities vehicle design and management of marketing and finance, transferring to an increasing degree to the auto parts industry manufacturing activities character and system designs and sets.

Terminals companies have carried out a strategy adopted:

1. The reorganization of the production and distribution chain to adapt to new situations;

2. deepening internationalization of production, to enhance its presence in markets with the greatest potential;

3. adjust their production structures to the emergence of large trading blocs in the world economy.

Thus, for Kosacoff (1998), terminals companies have a different degree of internationalization and relations with third markets through exports or foreign direct investment (FDI). In an overview, terminals companies looking to make an international integrated production network, which supports a strong relationship with regional producers of auto parts. Although we can see that the globalization of competition exceeds national platforms of the automotive industry, we can not speak of a global automotive market. But you can highlight a process of regionalization of the industry, where the various firms aim to establish a production base in each of the major regions and the introduction is observed in the emerging markets of the current model basic vehicles that are made in developed countries. While firms seek economies of scale globally to share components between plants installed in different locations.

Following analysis Kosacoff (1998), the profound changes that crossed the automotive industry in relation to new production models such as the localization and internationalization strategies also had its impact in the auto parts sector.

The dilemmas for the automotive components industry focus on the scale of production on the one hand, and the location to meet the needs of its customers (manufacturers terminals companies vehicles), on the other. This process affects differently to the three main groups of auto parts companies: a diversified producer; large producers specialized in parts; and small and medium enterprises have a very important role in the various countries in the auto parts market.

The United Auto Workers are according to the analysis of Kosacoff (1998), the main changes observed in the terminal-automatists relationship, are the biggest liability of suppliers in the design, a strong tendency to manufacture subassemblies rather than individual components and greater involvement terminals in production systems and quality suppliers. Restructuring and specificity (as a result of international competition and new manufacturing conditions) in the terminal for the auto parts industry involves modifications focused on the need for supplies of modular and sequential nature. Then through the emergence of this process it is evident in the market Megas unions Suppliers and regional suppliers; as the decrease in the number of direct suppliers and the disappearance of many firms of national capital is also observed. Currently, the international criteria for choosing providers focus on variables related to quality standards, technological competence, innovative capacity and the ability to respond to new procurement systems. The terminals intended for its suppliers, who have the necessary conditions to deliver the type of components in all regions where the vehicle is produced. Then the provider must multiply their deployments abroad and must carry out the following tasks manage, conduct, improve and develop hierarchical or horizontal systems also to other suppliers (own suppliers). The number of companies with capabilities and features to meet these requirements has decreased to a considerable degree, causing a high degree of concentration. So the strategy of internationalization of large auto parts focuses on improving its role in the core countries, through strategic alliances that support both coordinate manufacturers, and marketing of complete functions with a high technological level.

Taking the words of Kosacoff-Lopez (2000), subcontracting and outsourcing trends open up new opportunities for SMEs to produce new demands of intermediate inputs, where small businesses can cover. As well, have a long-term relationship and stable with larger companies, it allows SMEs to find ways to advance technologically.

“Some studies show that if there is indeed a significant number of SMEs that have adopted new technologies and organizational systems and production in many regions they are the primary suppliers of large firms operating there. Thus, a study conducted in the state of New York shows that most SMEs using modern techniques provide goods to order the larger companies, under conditions of changing specification and supply just in time “.

The role of key player of SMEs in the regional economy, as a result of certain general characteristics that favor the role of these in their development within specific territorial areas and where local factors and competitive advantages are important to them. So SMEs are more defined in regional and local markets, have a lower capacity for the relocation of their activities in other regions, as they also have less capacity to lobby to defend their interests, but on the other hand, are much more dependent presence of public goods, external economies and business services in the territories where they are located. (Sepulveda Ramirez, 2001).

Then as indicated by Gatto and Yoguel (1993), the existence of new relationships between large and smaller companies focus on different models. Taking two extremes, there are cases where large companies seek to reduce costs, an instrument like just in time, can move stocks to suppliers. However, if you search for flexibility through inter-company cooperation and complementation, the same just in time it allows easy profits of suppliers and improves channels of information and coordination between the two protagonists of the relationship.

According to Kosacoff (1998), the conjunction of the Global-Regional strategies (investment trend terminal sector in the components industry, the process of transformation of state regulatory frameworks emergence of a set of sector-regional agreements, changes in the hierarchy of subsidiaries) and continuous adjustments to the automotive regime led to the increased presence, both imported parts and components in domestic consumption. Thus, local auto parts firms reduced their number.

Then for Maceira (2003), a scenario where some large or medium, internationalized companies can access international technology seen and stand out as original equipment suppliers, as they can also access the markets of national and international credit. Moreover, coexist medium and small businesses without access to technology and international credit. So this duality hinders the diffusion or the multiplier effect of innovations introduced by the terminals, causing a bottleneck for generating positive externalities whole domestic market.


SMEs face different obstacles to carries out modifications in the production, technological and organizational framework: but also their ability to survive and expand has a close relationship with the development of a positive institutional framework. Where an important part of this framework are specific public policies, applied both at the local, provincial, national and supranational. (Kosacoff-Lopez, 2000).

It arises in the specific case of SMEs issue that the “association” and the relationship with other institutions and other actors, it would be a way to make the transition to higher levels of competitiveness. Where the most notorious example represents the “Italian industrial districts”. Given the Document of the United Nations Conference on Trade and Development (2006), which states that the commercial links between small and medium enterprises (SMEs) and transnational corporations (TNCs) may be the most convenient way to modernize companies of a country, providing technology transfer, knowledge and improve management and business practices. governments ie by establishing favorable policies, TNCs and SMEs: sustainable relationships but is not carried out only with the presence of ET, but through the participation of all the stakeholders.


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