Relations between small and large auto parts manufacturers in Brazil

Abstract

Relations between large companies and their suppliers have undergone changes, which have intensified with the increase of outsourcing in the 1990s. However, Brazilian national policies favoured vehicle parts and components imports, to the detriment of these relations. This study analyses the influence of large auto parts manufacturers on the introduction of production organisation practices at small supplier companies in this context. To this end, case studies were carried out at one large auto parts manufacturer and ten of its suppliers. It was noted that large buyer companies play an important role in the process of innovation in small supplier companies, although the level of requirements varies from one practice to another.