Could OEM supply contracts replace joint ventures?

By Luca Ciferri, Automotive News Europe

TURIN — In Europe, carmakers have traditionally preferred formal joint ventures to jointly develop and build vehicles.

Will the growing number of automaker supply contracts progressively replace the old style of joint ventures? Probably not.

“Normally, a joint venture is created when you also add capacity in creating a new plant, such as PSA/Peugeot-Citroen and Toyota did with TPCA in Kolin, Czech Republic,” said Roman Mathyssek, automotive analyst at Global Insight in London.

Mathyssek noted that it is much more difficult to share…

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