ABSTRACT
This chapter reviews upstream developments in the vehicle industry, which affect the competitive situation of UK component suppliers.
Since OE components represent about 55% of most European vehicle assemblers costs (Central Policy Review Staff, 1975, p.75), the competitive fortunes of UK assemblers and their suppliers are in fact highly interdependent. The competitiveness of the component industry is critically dependent on the strength of its home market base. Likewise any erosion in the competitive position of UK vehicle assemblers is likely to reflect at least in part weaknesses within the supplier sector, which if not resolved must threaten any recovery.
