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Supplying the FCA Group

Supplying the FCA Group

Publication Date: 30/04/2017

Access an OEM’s purchasing strategy, production forecasts, global footprint, supplier relations experiences, and SWOT (strength, weakness, opportunity, and threat) analysis

OEMs’ sourcing, investment, and production strategies are molded by a complex mix of interdependent factors, ranging from the outlook of local demand, trade tariffs, and supply base availability to OEMs’ technological and platform strategies. As the supply base becomes increasingly global, new opportunities are emerging for OEMs to optimize their sourcing cost structure by tapping suppliers in cost-competitive countries. In addition, the deployment of new modular vehicle platforms creates significant economies of scale for OEMs. This affects current sourcing structures, raising the risks for suppliers to win big or lose big, and even threatens the very existence of some component manufacturers.

IHS Automotive’s OEM Strategy Service provides insight, context, data, and analytics on OEM sourcing and production strategies and analysis of local supply base development in various regions and countries.

OEM strategists and planners use the service to:

  • Benchmark their sourcing strategies
  • Understand their sourcing potential in emerging countrie

Supplier strategists and planners use the service to:

  • Monitor the sourcing and platform outlook of their current customers
  • Decipher key sourcing patterns and strategies of new ones

About this report

With the tie-up between Fiat and Chrysler only having been formalised four years ago in 2009, there remains more badge-engineered model-sharing than platform-sharing between the two OEMs. That looks set to change, though, as the two companies continue to collaborate on new vehicle development projects. In November 2009, Scott Kunselman, now senior vice-president, purchasing and supplier quality head of purchasing at Chrysler, highlighted that the OEM’s product development plans over the following five years would result in a reduced number of individual platforms delivering the equal number of individual models spread across an increased number of segments.

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