ABSTRACT
The automotive industry is a very large and complex global industry made up of the largest multinational corporations with a range of products that includes automobiles, trucks, and mass transit busses. Top-level companies include General Motors Corporation, Ford Motor Company, Toyota, Nissan, Daimler-Chrysler, Volkswagen, Volvo, Honda, Kia, and others. These companies are usually referred to as original equipment makers (OEMs). The multitiered supply chain is made up of very large companies that may or may not be global in their reach. First-level vendors are referred to as tierone suppliers and their suppliers as tier-two suppliers and so on through the hierarchy. Some suppliers serve only one OEM while others serve a variety of customers. Although supplier relationships are not permanent, they do not change at a rapid pace. Investment in facilities and production capacity is high and margins are always thin and based on high volume. The original equipment customer is only one side of the market, as aftermarket replacement part sales can continue for many years.
