Supplier relations within the German automobile industry. The case of Daimler-Benz, 1950–1980

Abstract

The German automobile industry is often described by the maintenance of stable relationships between automakers and their suppliers. According to the varieties of capitalism approach, many firms in coordinated market economies (CME) cultivated strong inter-company relations. The article incorporates this idea and reflects on the supply relationship in the German automobile industry from the 1950s to the 1980s. The rapid increase in automobile production during the phase of growth demanded increasing capacities in the supplier industries and had some conflict potential, but at the same time supply structures were characterised by great continuity. At the end of the boom the coordinating culture of relations came under pressure and the existing rules of the game were modified.