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Automobile Parts and Accessories ManufacturePublished by: First Research, Inc. Published: Sep. 29, 2008 - 10 Pages Table of Contents
AbstractThe automobile parts manufacturing industry, with more than 5,000 US companies operating around 6,000 factories, has annual revenue of about $200 billion. Large companies include Delphi, Visteon, Dana, and ArvinMeritor. The industry is highly concentrated: the 50 largest companies hold about 70 percent of the market.COMPETITIVE LANDSCAPE Demand for auto parts is driven by new car sales, which are strongly affected by interest rates, and by the replacement market. The profitability of a company in the industry depends partly on how difficult it is to manufacture its products and partly on the volume of demand, since many costs are fixed. Small companies can compete successfully with large ones by focusing on a small number of products, or some highly technical ones. The structure of the industry is complex, with most smaller companies (referred to as "tier 2" and "tier 3" suppliers) selling parts to larger suppliers (referred to as "tier 1" suppliers), who in turn sell component assemblies or modules to car and truck assemblers such as GM and Ford - collectively called OEMs. Because of the hierarchical nature of the industry, the 50 largest companies control about 80 percent of the market. The large number of companies reflects the multitude of parts that go into an automobile, but generally no large competitive market for each part exists because of few customers. PRODUCTS, OPERATIONS & TECHNOLOGY Auto part suppliers make components, everything from ... Get Full Details About This Report >> |
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