The role of 1st tier suppliers in automobile product modularisation: The search for a coherent strategy

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Abstract:

Modularisation is a growing concept in the auto industry. Architectural decisions had been studied many times from the car maker's point of view (Fourcade and Midler, 2004). This article addresses the question of the supplier's strategy in the modular business. We show how suppliers' modular involvement have to face a value creation/risk dilemma. To overcome this dilemma, suppliers adopt 'hybrid mutant' strategies combining deep module redesign involvement with component or technology focus learning tracks. We define a typology of the suppliers involved in the modularisation. We explain why some suppliers have been successful in their module strategy and why some have disappeared. This research is based on both a general study of the automotive suppliers and an interactive research that we have been pursuing together with one first tier module supplier, since 2001. Copyright © 2005 Inderscience Enterprises Ltd.