Study: Suppliers add r&d, risk

By Ulrich Viehover
June 27, 2005

Stuttgart, Germany — European automakers are forcing suppliers to take on more upfront development costs, putting parts makers at greater risk if a new model’s sales are slow.

That is a key conclusion of a report by German consultant Hans-Andreas Fein and the research firm IRN Inc. of Grand Rapids, Michigan

According to the report, “Auto Manufacturer Concession Demands 2004,” European automakers last year said they developed just 6 percent of all components on their own. That’s down from 14 percent in 2002,…

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