Automobile Parts Manufacturing

Automobile Parts Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture automobile parts, including transmission and power train components, engines and engine parts, body parts and trim, electronics, braking systems, steering and suspension components, as well as motor vehicle seating. Major companies include American Axle & Manufacturing, BorgWarner, Dana Incorporated, Lear Corporation, and Tenneco (all based in the US); along with Adient and Aptiv (Ireland), Aisin Corporation and DENSO (both based in Japan), Bosch and ZF Group (both based in Germany), Forvia (France), and Magna International (Canada).

COMPETITIVE LANDSCAPE

As the automotive industry adapts to a future that includes electric drivetrains, autonomous technology, connectivity, and mobility options outside traditional car ownership, suppliers must evolve to meet these new challenges. Technology content is increasing its share of overall vehicle value, while hard auto parts are expected to become more commoditized. New industry entrants including tech firms and consumer electronics companies also present challenges to established suppliers. To remain competitive, automotive suppliers must develop fresh strategies that address this wide array of emerging challenges and opportunities.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product categories for the US industry are gasoline engines, which account for about 30% of the industry revenue, followed by miscellaneous motor vehicle parts accounting for more than 20% and car and light transmission with roughly 20%. Other major products include automobile trimmings (more than 10%), fabricated seat and safety belts (10%), and motor vehicle axles (10%).