Martin's World

Nowadays vehicles are composed of around 20 000 to 30 000 different parts , all of which even the largest manufacturers cannot produce by themselves. Therefore automakers are forced to outsource production or purchase already finished product parts from second and third level suppliers.

Also considering the individual complexity of the subparts it is a crucial thing to buy in the right parts without loosing the focus on other non competitive technologies but at the same time keep the fundamental differential criteria and intellectual property for the creation and design of unique, competitive and differencing car products.
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The automotive business is a very tough market. The market is fragmented and dominated by a relative small amount of huge global players.The entry barriers are huge due to economy of scale.

Last time I was wondering how much the profit margin would be for a single vehicle sales and I found some interesting numbers. Continue reading »