Research and Markets: Vehicle Manufacturers still very Interested in the Long-term Potential of Outsourcing Responsibility

DUBLIN, Ireland--July 15, 2004--Research and Markets (http://www.researchandmarkets.com) has announced the addition of Module & Systems Report 2004 to their offering.

Systems and modules is a very important strategic issue for vehicle makers and leading first tier suppliers.

Vehicle manufacturers remain very interested in the long-term potential of outsourcing responsibility for more of the major sub-assemblies and integrated systems of vehicles.

The major car makers appear committed to a long-term reduction in the level of in-house value added, as the complexity and equipment levels of new vehicles grow and the role of platforms and niche vehicles has expanded and the growth of modules and systems has extended beyond Europe to Japan and Korea.

But the growth of systems and in particular modules has not been as fast as expected in some areas, and suppliers have sometimes found it difficult to earn money on the larger, more complex developments and assemblies that they have undertaken.

Both suppliers and carmakers have experimented with different business models to resolve the problems inherent in this development.

Suppliers have adopted a range of strategies in the area - ArvinMeritor and Faurecia have concentrated on modules, while Bosch and Valeo have focused on systems development, for example.

ZF has decided that it is primarily interested in systems and modules for medium volume models, where it has a large in-house content.

Supplier parks and supply chain management have developed in ways that were not expected as suppliers have confronted the tasks that OEMs are trying to transfer.

The report aims to map out these developments in so that supplier and purchasing executives can compare and contrast strategies.

For more information visit http://www.researchandmarkets.com/reports/c2745