Abstract | The literature and theory of supplier involvement in the design and manufacture of products in the automotive sector has not kept pace with developments in the industry. We explore the previously undocumented emergence of full service vehicle manufacturers (FSV) which produce finished products for the large manufacturers. The emergence of FSVs is explained using transaction cost ideas as they do not carry the costs of developing engines and power trains and so have been competitive in traditionally marginal markets. FSVs have recently seen a shakeout with some developing whilst others have faltered, and we explain the differing success through a changing focus of capability from design to production once vehicles have become established in the market. |
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