Subcontracting in the motor industry: a case study in Coventry

Abstract

This chapter focuses on the use of subcontracting in the motor vehicle industry in the Coventry local economy. The motor vehicle sector has been important in the Coventry local economy since the early 1900s, securing employment not only in the manufacturers, but also in an extensive network of component suppliers and subcontracting firms. Subcontracting has received revived interest over the 1980s; in particular it is seen as an integral strategy of manufacturing firms aiming for flexibility in the production process. Specialist subcontracting is where the customer relies on the specialist skills of the subcontractor and design decisions are usually left to the subcontractor. The characteristic use of production subcontracting by firms in the motor industry prior to the 1980s was essentially that of capacity or concurrent subcontracting. The users of subcontracting in the motor industry in the Coventry local economy are now more concerned with good quality at a reasonable price, rather than a good price with reasonable quality.