Until the sixties the French automotive industry was operation on the principle of industrial integration. Gradually, however the industry was be inclined to break this mode of operation in light of the transformation of the market and the pressure it brings with it. Automobile manufacturers increasingly began to choose to outsource some part of their manufacturing activities to subcontractors.
The relationship between manufacturers and suppliers thus entered a phase of change. Until the late 70's, the manufacturer had total domination over the suppliers.
[...] Faced with increasing demand, companies are often faced with the choice between "making" and "making do." Recent developments in the outsourcing industry led to a reorganization of back-office operations to improve competitiveness. The figures released indicate that several changes were made in the outsourcing sector. The largest share of outsourcing today is in the automobile outsourcing sector. of sales 30% of the value added and 71% of staff working in the automotive industry belong to automotive subcontractors. The new generation of sub-contractors will face more and more complex tasks set by companies who are becoming increasingly demanding with respect to association before the project, responding to a set budget, financial strength, and selection on the basis of quality, competitiveness, innovation and logistics. [...]
[...] The peculiarity of this industry lies in the fact that they sell their product directly to the end users. However even this aspect is now undergoing a change. So far, the distributors could be classified into a network of actors namely the branches, subsidiaries, franchises and agents. They were each subject to different laws. Each of these distributors had all a direct link with the manufacturer whether contractual or capitalistic. This position tends to be susceptible to change in particular with the European Union. [...]
[...] Question The factors that explain the evolution of the automotive industry in France and worldwide and a prioritization of these factors There are numerous reasons for the evolution of the automotive sector. The first noticeable change is the evolution of the market and the product. The car has become a common article of consumption in most countries, and is no longer considered a luxury reserved for a wealthy clientele. This democratization of the vehicle has resulted in greater demand and in the evolution of a policy to encourage the consumer to renew their vehicle more frequently leading to increased sales. [...]
[...] Due to a significant disintegration of production which has affected almost the entire industry, services required from external firms has become more important than the task of subcontracting itself. Trends are emerging whereby the manufacturer becomes the payer in the subcontracting business. Since sub-contractors are now accepting the bulk of their work through partnerships, manufacturers no longer contact them directly. Services are applied for through the OEMs who initiate contracts of low values until they are completely done away with. [...]
[...] The face of the automotive industry has changed and now presents a conglomeration of manufacturers and some large partners that provide most of the parts required in assembly. This pattern is now seen in the case of Valeo, GM France, and Michelin to name a few. The automotive industry is evolving with the demands vis-à-vis its partners and how they want to work, particularly with regard to product quality. Companies follow the policy of production with 'zero defect', high service quality, competitiveness and the ability to innovate and change with the transfer of technical knowledge. [...]
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