Task shift of automakers to steel suppliers in the value chain of automotive sheets
by Kyung-Hee Jung
International Journal of Automotive Technology and Management (IJATM), Vol. 5, No. 2, 2005

Abstract: This study considers the shift of tasks in customer-supplier relations of automakers and steel mills in the automotive steel sheets market. We analyse competitive environments of automotive steel makers, and supplier relationships of automakers with steel mills in North America, Japan and Western Europe, based on regional market characteristics. The essential role of steel mills in new vehicle development is then defined with the importance of early vendor involvement. It is shown that the conventional roles of automakers in stamping and painting processes are being transferred to steel mills with more interdependent and collaborative relations. Finally, the organisational structure of global leading mills is investigated, in order to perform effective intra- and inter-firm relations of steel mills with major automakers.

Online publication date: Fri, 03-Jun-2005

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