ECP | Luxemburg, 14.08.2020
Think of an automotive supplier and the first thought that comes to mind is a “component pusher”. Given the relative small size of these players in comparison to global OEMs and the transactional nature of their relationships in this mature industry it is obvious to term them as price takers, which is partially true, especially if one compares the profitability of some of these players to that of OEMs. Wilson Kia Onn Wong in his book titled “Automotive Global Value Chain: The Rise of Mega Suppliers” describes the shift in balance of power from Automotive OEMs to Tier-1 suppliers over the last decade.
Mit freundlichen Grüssen aus Luxembourg
Léon Kirch, CIO & Partner
