Beyond the keiretsu.(ON STRATEGY)

From: Automotive Design & Production | Date: September 1, 2005| Author: | Copyright information

OEMs are changing the rules by which they select suppliers. With their traditional ties to carmakers disintegrating, Japanese automotive suppliers must reposition themselves to survive. Japan's automotive industry from its inception was shaped by keiretsu, business groups that have bound banks, trading houses, and industrial firms into loosely knit conglomerates. Sticking together by holding shares in each other and buying each others' wares, foreign companies were largely prevented from gaining a foothold in this market. While the pyramidal tier structure has long dominated the ...

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