Bigger challenges for small and midsized auto suppliers in China
June 12th, 2008 by Administrator
The newest issue of Actionline, the magazine published by the Automotive Industry Action Group, includes an article written by Technomic Asia’s Steve Ganster. The article discusses some of the challenges small and midsize automotive suppliers face when exploring and entering the Chinese market.
From the article’s introduction:
China’s burgeoning automotive market is having a significant and strategic effect on companies’ supply chains. Western parts and material suppliers have little choice but to respond proactively to China’s exploding automotive market or risk not only missing new demand opportunities in China but also opening the door for both international and Chinese companies to come after them in the West.
[...]
In the past few years, first-tier parts makers have turned to their supply base, passing on the pressure to localize to second- and third-tier suppliers. This cycle creates both opportunities and threats at all levels of the supply chain. As a result, many small- to mid-sized firms (SMEs) are now challenged to respond — or else.
Read the full article here.
