Auto parts makers not sure yet if globalization’s megasuppliers are the future image

The sector of the auto industry has been deeply rocked by ZF Friedrichshafen’s planned $13.5 billion buyout of rivals from TRW Automotive – but the competitors are not yet decided if that’s the only route.

For example, Faurecia CEO Yann Delabriere sees the route towards building more megasuppliers that can pull their resources together and deeply expand their product ranges in order to meet high-tech solution demand from customers anywhere around the world. Itself already one of those megasuppliers, Faurecia has managed to climb sales during the third quarter by 7% to 4.4 billion euros – and the full-year target is for a larger by 4% revenue over the 18 billion euros it reported last year. “This is a trend and it is supported by two major industry drivers: globalization and technology,” he says.

On the other hand, Valeo’s leader says his company is countering such moves towards the ever-growing megasuppliers: “I am not convinced that size is necessarily an advantage,” commented Valeo CEO Jacques Aschenbroich. He says that when a company – such as Valeo – is already well positioned in the critical technology fields and able to implement trends quickly, it doesn’t need to find any ties with long-time rivals. According to Aschenbroich, Valeo is “already in a position to make autonomous driving possible technically,” as the company was among the first parts makers that entered the self-driving playing field.

Via Automotive News Europe