Carmaker supply contracts start to spread in Europe

By Luca Ciferri, Automotive News Europe

TURIN — Auto manufacturers building vehicles for each other is fairly common in the US and Japan, but the practice is rapidly spreading to Europe.

It can slash manufacturing costs, spread scarce resources and quickly fill gaps in product lineups, but the risks include brand dilution and creating an instant rival, analysts say.

“European OEMs are gradually waking up to the fact that they do not operate in a vacuum,” said Adam Jonas, European auto analyst at Morgan Stanley in London. “To…

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