Abstract
The competition and cooperation between automobile manufacturers and battery enterprises are an important topic concerned by electric vehicle supply chain management. This paper investigates the cooperation modes between competing manufacturers in the EV (electric vehicle) supply chain, under which the common supplier launches the innovation of the key component of EV to meet the demand of two manufacturers. Three cooperation modes between manufacturers, full cooperation, partial cooperation, and noncooperation, are established to depict the pricing decisions by the Stackelberg game. We find out that, when competition degree is small, it is more profitable to choose partial cooperation, while it is more advantageous to choose full cooperation when competition degree is high, and the manufacturer’s basic market demand is relatively small. Therefore, it is always preferred for the common supplier to expect noncooperation between manufacturers. Under the background that basic market demand ratio changes with competition degree between markets, it could be better for the whole supply chain when without cooperation or partial cooperation depended on the supplier power while it could be better for customers when full cooperation or partial cooperation depended on the competition degree between manufacturers.
Highlights
Facing the great challenges of transportation energy and environmental problems, new energy vehicles characterized by energy diversification, clean emission, and fuel conservation are developing rapidly all over the world
In the electric vehicle battery market, do battery suppliers begin to carry out technological innovation and automobile manufacturers are actively innovating
This paper studies the impact of three different interaction behaviors of manufacturers on the decision-making of supply chain members. e common suppliers take the initiative to innovate and provide competitive manufacturers with key components required for vehicle production
Summary
Facing the great challenges of transportation energy and environmental problems, new energy vehicles characterized by energy diversification, clean emission, and fuel conservation are developing rapidly all over the world. In the electric vehicle battery market, do battery suppliers begin to carry out technological innovation and automobile manufacturers are actively innovating. Huawei and Xiaomi will jointly sign a contract on CPU (central processing unit) with Qualcomm Snapdragon, and BMW and Jaguar will use the same chassis supplier. In this case, the products of downstream competitive manufacturers will compete with each other in the market, but all manufacturers who sign a contract with a common supplier will have common benefits. How to decide the cooperation mode for competing manufacturers facing the common supplier is a problem worthy of attention.
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