Technological issues and organisational culture in the automotive industry

The world is getting smaller. With the help of the internet, e-mail, and improvements in transportation, a global market exists. To compete globally in the automotive industry, companies keep a close watch on costs. Costs can be reduced through technological advances in manufacturing, and outsourcing of labour. A growing trend is to have parts suppliers handle more of the manufacturing, and engineering, shifting the Original Equipment Manufacturer (OEM) to more of an assembler. Due to these changes and increasing complexity of the vehicles themselves, it is important to maintain quality relationships between OEMs and suppliers. In North America, Japan-based companies have better relationships with suppliers than traditional US carmakers. This may be due to the corporate culture or organisational culture of the Japanese firms. Their cultures are based on trust, communication, and respect for individuals, leading to a focus on quality and continuous improvements. Copyright © 2007 Inderscience Enterprises Ltd.