Japanese-Affiliated Automakers:

Management Practices Related to Purchasing Parts

T-NSIAD-92-5: Published: Nov 14, 1991. Publicly Released: Nov 14, 1991.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed the concern that Japanese-affiliated auto assemblers would only buy parts and components from traditional Japanese suppliers, focusing on Japanese management practices related to purchasing parts. GAO noted that: (1) the number of Japanese vehicles produced in the United States has increased by 400 percent; (2) the vehicles produced in the U.S. by Japanese-affiliated automakers contain a larger proportion of imported parts than those produced by traditional U.S. automakers; (3) of 30 U.S. auto parts suppliers reviewed 15 had done business with at least one Japanese-affiliated automaker; (4) difficulties U.S. auto part suppliers encountered in obtaining business from Japanese-affiliated automakers included overcoming preexisting relationships between Japanese automakers and their suppliers and surmounting language and cultural differences; (5) U.S. companies that have been successful in selling parts to Japanese-affiliated automakers have used such approaches as entering into licensing agreements, starting joint ventures with Japanese-affiliated suppliers, and establishing a representative presence in Japan; and (6) Japanese automobile companies are committed to total quality control, require their suppliers to deliver the exact number and kind of parts precisely when they are needed, have longer-term relationships with their suppliers and involve them in parts design, production, and supply, and source a higher percentage of parts from outside of the company.

Sep 20, 2016

Sep 6, 2016

Aug 19, 2016

Aug 12, 2016

Jul 29, 2016

Jul 28, 2016

Jul 13, 2016

Jul 11, 2016

Jun 13, 2016

Looking for more? Browse all our products here