Up to Standards
The two most-glaring issues start with “captive product.” The auto manufacturers of today have become efficient by building fewer of the components that go into the complex and sophisticated product that is today’s automobile. Tier 1 suppliers provide many components that go into the car. Although the car manufacturer may make the sheet metal and engines and be responsible for the design and process engineering to produce the vehicle, Tier 1 suppliers like BorgWarner, Tremec, Aisin, ZF, New Venture Gear, American Axle, Dana and Eaton manufacture the transmissions, transfer cases and differentials for the driveline. Other companies produce the interiors, steering, HVAC, fuel injection and other components.