The Strategic Importance of Supplier Relationships in the Automotive Industry

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Abstract:

Which business strategy could be feasible for the development of the green car? After the financial crisis starting in Q3/2008, the US Government takeover of GM in 2009 and the global warming debate there are new rules of the game. The competition is not only between global companies but increasingly between national governments.

We conclude that the winners in the automobile industry from 2010 on will be those who can organize long-term collaboration partnerships between the car makers, their suppliers, and the political stakeholders. This conclusion is drawn from our in-depth, longitudinal (1990-2010) case study of Volvo and Autoliv and is referring to the findings of Lorenzoni and Lipparini (1994) and Dyer and Nobeoka (2000), and Helper et al (2000, 2010).