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Extra resources for Aston Martin DB7 : the complete story
5). Two Paradigms for Carmaker–Supplier Relations Researchers argue that an automaker’s strong relationships to its supply base can be a valuable strategic capability that is difficult and time-consuming for competitors to imitate. According to Jeffrey Dyer (2000, p. ” The Parts of Your Vehicle 21 Analysts’ perspectives on Japanese carmaker–supplier relations Japanese carmakers have established constructive partnerships with their suppliers. A key to better supplier relations is trust. The three leading Japanese carmakers, Toyota, Honda, and Nissan, are seen as legitimate semi-insiders by supplier companies (Sako 2004, p.
S. automobile industry have little expectation of being treated fairly by their customers” (p. 776). 4 summarizes the contrast between the two models of supplier relations. S. and Japanese Carmakers Criteria Detroit 3a Japanese 3b Relationship orientation Adversarial; focus is on cost and OEMs’ short-term gain Strategically integrate suppliers into partnershiplike relationship Open, honest communication Indifference; incomplete and late information High level and timely Protect confidential information Little regard for suppliers’ proprietary information or intellectual property High regard Importance of cost vs.
As independent companies, Delphi and Visteon were pressured by GM and Ford to charge prices that were competitive with independent suppliers. GM and Ford moved business away from Delphi and Visteon if independent suppliers could provide parts at lower prices. At the same time, Delphi and Visteon faced higher expenses than independent suppliers. As former divisions of GM and Ford, the two parts makers were paying wages comparable to those that GM and Ford paid 48 Klier and Rubenstein for final assembly work, rather than the lower wages prevailing in the motor vehicle parts industry.