Industry and Government Measures to Promote Forward Integration of Automotive Supplier R&D from Developing Countries to Multinational OEMs

Options are explored by which a developing country can promote its local automotive component industry's R&D and resulting technologies' forward integration into the multinational automotive life cycle. This is becoming increasingly difficult because vehicle design decisions are made a...

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Bibliographic Details
Main Authors: Moos, O., Pretorius, M.W., Steyn, J.L.
Format: Conference Proceeding
Language:English
Subjects:
Africa
Automotive components
Automotive engineering
Casting
Costs
Government
Innovation management
Procurement
Technological innovation
Vehicles
Online Access:Request full text
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Summary:Options are explored by which a developing country can promote its local automotive component industry's R&D and resulting technologies' forward integration into the multinational automotive life cycle. This is becoming increasingly difficult because vehicle design decisions are made at global head office level. Technological innovation is a means of taking competitiveness beyond low cost labour in developing countries towards more sustainable bases of competition. An example of advanced casting technology developed by a South African research agency is considered. South Africa offers the opportunity of learning from eight subsidiaries of multinational OEMs (Ford, GM, BMW, DaimlerChrysler, VW, Nissan, Toyota, Fiat). First local OEM procurement managers were interviewed on what technology innovators in developing countries could do to gain access to the global supply chain. Then a case study of successful global forward integration was considered. Government measures were explored based on literature as well as industry response. It was found to include increased support for tertiary education and research, research publications and patenting, but also for business development towards representation near multinational OEM parent design offices.
ISSN:2159-5100
DOI:10.1109/PICMET.2007.4349350