Improving performances at the second tier of the automotive supply chain: a draft case study of an innovative initiative in the Italian car industry

International Journal of Automotive Technology and Management

Volumn 1, Issue 4, 2001, Pages 449-458

  Follis, Massimo ^a   Enrietti, Aldo ^a  

^a UNIVERSITY OF TURIN   (Italy)

Author keywords

Automobile industry; competencies; small and medium enterprises; supplier chain; training

Indexed keywords

EID: 6344260652     PISSN: 14709511     EISSN: 17415012     Source Type: Journal    
DOI: 10.1504/IJATM.2001.000051     Document Type: Article

References (15)

1. In 1990 Mercedes had 2500 suppliers, GM Europe 2000, Ford Europe and VW 1700, Audi and PSI 1250, BMW and Renault 1100, and Fiat 720 and the aim of many European car manufacturers for the middle of the 1990s was: 500 suppliers for Mercedes and Fiat, BMW 450, Audi 400, Ford and PSA 600 Renault 700 and VW 1000.
2. See in the International Journal of Automotive Technology and Management, (2001) Vol. 1, No 1, the contributions of Lung, Chanaron, Jürgens and Salerno.
3. (2000) “Tier 1 suppliers face many of the same challenges and thus have the same capabilities as vehicle manufacturers: supply chain management; procurement; JIT-JIS delivery, quality assurance; in addition to product development and proving” in PricewaterhouseCooper (2000) The Second Automotive Century, p.30.
4. Some examples of price reductions might be useful: Renault, –18% between 1997 and 2000; PSA, –25% from 1997 to 2000; Ford, –5% per annum between 1996 and 2000; Honda UK, –1.5% per annum and Fiat 3% per annum (EIU, Components Business Europe, several numbers).
5. (1999) “Second tier companies are having to shift their marketing and engineering resources to support first tier suppliers who are assuming an increasingly important role in sourcing decision. First tier suppliers are looking for competent and strong partners to help them in module and system development, and are requiring commitment and development resources from second tier suppliers”, in PricewaterhouseCooper (1999) Global Automotive Deal Survey 1998, p.5.
6. Chrysler puts the average cost per car of the warranty it supplies at $1,000.
7. Fiat Auto, Suppliers Convention, 1994.
8. For the Italian case, see Rolfo, S. and Vitali, G. (Eds.) (2001) Dinamiche competitive e innovazione nel settore della componentistica per auto, Milan, Franco Angeli, in particular the contributions of Vitali and Calabrese.
9. We owe the following arguments to Chanaron, J.J., De Banville, E., Barnerias, J. and Deranlot, M. (1997) La sous-traitance automobile en Rhône-Alpes, Région Rhône-Alpes.
10. The number of suppliers rose to 1200 in 1987 with Fiat’s takeover of Alfa Romeo. The number of suppliers starts to fall in 1987 very rapidly; so much so that today, it is less than one third of the 1987 figure, that is to say, about 360. For more details see Bianchi, Enrietti, and Lanzetti ‘The car technological district in Piedmont: definition, dynamics, policy’, in this issue.
11. See, Volpato, G. (1996) Il caso Fiat. Una strategia di riorganizzazione e di rilancio, Turin, Isedi; Enrietti, A. (1995) ‘Il settore dei componenti auto: struttura e dinamica’, Economia e Politica Industriale, No. 88, pp.131–151.
12. See: ‘Integrarsi per crescere’, Qualitas, No 23 (1999); CONSAF, (1999) Progetto Crescita Guidata Fornitori 2° livello, Turin.
13. ISVOR is one of Europe’s most important full-line training companies in terms of turnover, size, quantity and quality of staff. ISVOR was founded in the 1970s through a merger of all Fiat’s training activities.
14. Data have been provided by interviews in Fiat Auto and ISVOR.
15. The first module concerns the regulation of the production process; the second, the quality in production and the third, the methodologies to improve quality.