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Supply Chain Implications of Automotive Market Disruptions

The automotive market in North America went from 18.4 million units in 2007 to a low of 12.6 million units in 2009 and has now rebounded to a forecast of xxx. million units in 2016. The severity of the recession forced automakers into actions that were very public such as bankruptcy and the elimination of divisions. However, the recession did not change the fact that the automotive market is extremely competitive with automakers fighting for customers and market share. The competitive nature of the market has created the need for OE’s to keep competitive in product offerings at a lower cost. They are working to achieve this by accelerating the trend to global platforms, introducing new technologies, and increasing the number of nameplates or platforms in the market place.

This paper summarizes the trends caused by the ongoing market disruption that started in 2009 and explores the impact to the tiered supply chain that supports the industry. It does this by looking at the structure of the industry before the recession (2006), at the present time (2016) and in the future (2022).

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