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Technology, Automotive industry, Supply chain

Tier 1 and OEM car parts - What does the manufacturing of car components for OEM and Tier 1 look like?

02 September 2020

In Knauf Industries Automotive we strive to be the best possible partner for OEMs. As a direct Tier 1 supplier in the automotive sector, we understand the importance of our role. We make every effort to ensure that the solutions we present are appropriate to the customer's needs. Automotive part manufacturers and major automotive OEM players are happy to use our services.

What does the manufacture of car parts look like? Relations between OEMs and suppliers

The supply chain in the automotive sector is extremely important. The number of dependencies it creates and the question of their consequences for effective production is a very broad subject. Basically, it is the OEM – the manufacturer of the final product – that deals with the final release of the vehicle to the market. Usually, it cannot function without other suppliers. Establishing an infrastructure that produces car components for a single brand is a demanding project that often turns out not to be very profitable. For this reason, the so-called direct Tier 1 suppliers operate on the market. 

What is a Tier 1 automotive supplier and its role?

Tier 1 suppliers develop solutions adapted to the finished product without major modifications. Modern technologies such as digital twins are extremely important in this area – a perfectly matched component must reach the OEM. However, Tier 1 must also use parts that allow for the production of components. This is where Tier 2 comes in.

What is a role of Tier 2 and Tier 3 in automotive sector?

Tier 2 has to use complementary suppliers to supplement the raw materials – this is how we get to the next layer, namely Tier 3. All these elements of the supply chain are linearly dependent on each other, in addition to more advanced correlations. The plastic component manufacturer and the Tier 3 supplier who is involved in the provision of raw materials are very closely linked. However, this affects the efficiency of the system. The automotive market does not like downtime. If we do not have access to the components on time, we may have a huge problem achieving production success.

How we fulfill our role as a Tier 1 supplier in the automotive sector?

Plastic production requires our company to use the latest solutions. We have appropriate 3D scanners, modern production lines and qualified staff who ensure the highest quality of service. As a Tier 1 supplier, we understand that there is no room for any mistakes in our work. The solutions provided will each time be adapted directly to the final project. Our cooperation is not limited to the production of high quality plastic products – we also provide design support, and offer comprehensive assistance in the implementation of the entire order. We will be in touch with you at every step of the process and react immediately to any problems. Thanks to our experience, we understand the laws that govern automotive production. We are familiar with mechanisms such as "time to market" reduction, "lean manufacturing", "digital twins" and all other processes that can affect the added value of the businesses we work with. Manufacturing of plastic elements for automotive sector is our speciality. We are trustworthy manufacturer of Tier 1 and OEM car components such as:

We are also one Tier 1 supplier that will not disappoint. This is reflected in the extensive cooperation we have undertaken over the years with the largest companies in the world.

OEMs and Tier 1 suppliers who we work with

As an equipment manufacturer in the automotive sector, we supply car parts to the largest players on the market. OEMs and direct Tier 1 suppliers who have had the opportunity to work with us include:

  • Audi – a German premium vehicle manufacturer.
  • Dacia – a Romanian car brand, which has been on the market since 1966.
  • Opel – one of the oldest automotive concerns.
  • Nissan – a strong player on the automotive market, founded in Japan.
  • Renault – one of the oldest companies in the automotive sector, on the market since 1899.
  • Seat – a popular Spanish player on the automotive market.
  • Adler Pelzer Group – a brand dealing with designing car parts.
  • SMR Automotive – a company producing modern solutions for the automotive sector.
  • Toyota – an automotive concern from Japan, which has a very wide range of products.

See also: Knauf Automotive among the best suppliers of Toyota Boshoku Europe 

However, this list is much longer. Our customers appreciate our commitment and desire to provide them with the best possible service and support. 
For our part, we offer state-of-the-art solutions, world-class innovations and years of experience in the automotive sector.

Contact us to check how we can help you in manufacturing for automotive sector.

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