Title: Task shift of automakers to steel suppliers in the value chain of automotive sheets

Authors: Kyung-Hee Jung

Addresses: POSCO Research Institute, 147 Samsungdong, POSRI Bldg., Kangnamku, Seoul 135-090, Korea

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.

Keywords: automobile industry; steel industry; automotive steel sheets; customer-supplier relationship; early vendor involvement; new vehicle development; organisational structure; role transfer; collaboration; steel mills; automotive suppliers; supply chain management; SCM.

DOI: 10.1504/IJATM.2005.007184

International Journal of Automotive Technology and Management, 2005 Vol.5 No.2, pp.216 - 233

Published online: 03 Jun 2005 *

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