Auto parts giant Astemo shifts from a "wait-and-respond" to a "propose-and-lead" business model: can it compete with Chinese rivals?
Published
As the automotive industry undergoes major changes, auto parts maker Astemo is aiming to chart a new management direction. Until now, parts makers have largely been in a "subcontractor" position, moving forward with work only after receiving orders and requirements from automakers (OEMs). Astemo, however, is trying to break away from that traditional business model.
Behind this is the rapid rise of Chinese companies. Chinese firms are said to be quick to develop products and bring them to market, and they also have strong capabilities in keeping prices low. Simply waiting for automakers' requirements is making it increasingly difficult to win against such competition. For this reason, Astemo is aiming to become a "proposal-based supplier" that proactively offers new technologies and products.
To become a proposal-based supplier, rather than passively waiting for customer requirements, a company needs to anticipate market changes and the technologies that will be needed in the future. Speeding up development and finding ways to reduce costs are also indispensable. Astemo is advancing these changes within the company while trying to respond to competition from Chinese firms.
The automotive industry is expected to continue changing significantly due to electrification and technological innovation. For parts makers, shifting from a passive stance to one of proactively making proposals is an important challenge. Attention is focused on what concrete results Astemo's efforts will produce.
Sources: レスポンス（Response.jp）
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