Abstract

Major car manufacturers have long relied upon third- party contractors to produce their top brands for them. Carrying the Porsche or Mercedes badge on your vehicle no longer guarantees that it was assembled by the brand owner. A range of global car makers, such as Volkswagen, Mercedes, Ford and Chrysler, use little-known contractors to produce low-volume and specialised models for them. These contractors have become dubbed '0.5-tier' suppliers because they sit between the car companies (the original equipment manufacturers, or OEMs) and 'tier-one' suppliers of components and systems to the OEMs.

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