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The broken OEM-supplier model & how to fix it.

Publication: Automotive Design & Production
Publication Date: 01-MAR-09 		Format: Online
Delivery: Immediate Online Access

Article Excerpt
The need for change in business models in the auto industry is essential. This became exceedingly clear in a recent benchmarking study that we conducted on vendor tooling, wherein we looked at the cost difference that exists among the major North American OEMs. The data definitely shows gaps in the cost of many different types of vendor tools, such as molds and stamping dies. In some cases, these are very significant gaps. But the real story exists around the drivers for the cost differences. But this study is only a microcosm of a larger issue that has potentially devastating consequences for OEMs and supplier alike.

When looking at tooling cost issues, it is critical to examine the entire lifecycle for...

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