European car makers and their suppliers: changes at the interface

R.T. McIvor (School of Management, Faculty of Business and Management, University of Ulster, Ulster, Northern Ireland)
P.K. Humphreys (Department of Industrial and Manufacturing Systems Engineering, Faculty of Business and Management, University of Hong Kong, Hong Kong)
W.E. McAleer (School of Management, Faculty of Business and Management, University of Ulster, Ulster, Northern Ireland)

European Business Review

ISSN: 0955-534X

Publication date: 1 April 1998

Abstract

The objective of this paper is to examine changes in the European car industry and in particular the impact these changes are having on the car makers and their relationships with their suppliers. With excess production capacity and the poor outlook for car sales, the European car industry requires structural changes to balance supply and demand. In an effort to address these problems, the car makers are re‐appraising their relations with their suppliers. They are now pursuing more intensive and interactive relationships with their suppliers, collaborating in areas such as new product development, supplier development, and information sharing on a range of issues. However, there is evidence to illustrate that there is a lack of trust between the car makers and their suppliers. It is argued that if the European car makers are to compete globally then there will have to be more trust and co‐operation between the car makers and the components industry.

Keywords

Citation

McIvor, R., Humphreys, P. and McAleer, W. (1998), "European car makers and their suppliers: changes at the interface", European Business Review, Vol. 98 No. 2, pp. 87-99. https://doi.org/10.1108/09555349810205662

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MCB UP Ltd

Copyright © 1998, MCB UP Limited

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