A Study on the Structural Changes of Automobile Supply Chain and the Strategies of Taiwanese Auto Parts Manufactures
Date Issued
2006
Date
2006
Author(s)
Hwang, Sy-Ru
DOI
zh-TW
Abstract
Delphi, General Motor’s tier one auto-part manufacturer, went bankruptcy in October of 2005. This is the largest bankruptcy case in the American automobile industry, which attracted substantial attention and discussion in the field. In addition, the total market share of the Big-3 in North America has dropped from 72% in 2001 to 56.6% in 2005, while Japanese, European, and Korean automakers, led by Toyota, grabbed the market vacancy.
Taiwan is the leading exporter of auto parts in the world; however, it has not yet joined in the international OEM supply system for the major car makers, despite its 80% share of the after sales market. Furthermore, the original customer base is gradually being challenged by the continuous technological development of emerging nations. Starting from the event of Delphi’s bankruptcy, this study attempts to examine the following issues: What caused this crisis in the American automobile industry? How will the supply chain structure change? What are the impacts and opportunities for Taiwanese auto parts industries given the structural change?
We first undertook the perspective of supplier relationship management to evaluate the differences between the American and Japanese auto supply chains. This research concludes that American automakers will surely shift from arm’s length type of supply chain model to the partnership one. Strategy changes include: cutting down the number of suppliers and keeping long-turn relationship. The Double Helix model proves that during the de-integration of the auto supply chain, the mega supplier business model is still the necessary way to strengthen the competence. When price competition from the players of emerging nations put pressure on the Taiwanese producers, auto-part firms should concentrate on entering the international OEM by leveraging existing competence in the after market, integrating vertically, and providing total solution. In recent years, the transformation of automobile supply chain offers a great opportunity for Taiwanese firms to develop a relationship with the international market. Considering the automakers’ need of innovation, the product characteristics of automotive electronics, the industry advantages for Taiwan, and the limits of national geography, we suggest that telematics is an attractive entry area for Taiwanese firms.
Subjects
汽車零組件產業
汽車電子
供應商關係理論
Auto Parts Industry
Automotive Electronic
Theory of Supplier Relationship Management
Type
thesis