As vehicles get more and more complex, auto suppliers will need everything in their arsenal to win major contracts from automakers. According to an article on Just-Auto (sub. req'd), by the year 2012, automotive suppliers will bear more than half of the total research and development of a given automobile. What this means for suppliers is that they need to stay at the forefront in environmental technologies. Increasingly complex systems will be necessary for automobiles to meet stringent emissions and fuel efficiency requirements. Biofuels and clean diesel technology are reportedly one area that suppliers are being relied rather heavily upon. Not only must the suppliers integrate the latest technology into their equipment, they need to do so at an agreeable cost to the manufacturer. Donald Walker of Magna International indicates that the road ahead will not be easy, saying, "There will be fewer pieces of the business to bid on, so the supply chain is going to shrink. Some suppliers will prosper and others will go out of business." Sounds like an already tough business stands to get even tougher.
[Source: Just-Auto - sub. req'd]
