Published on : 04 Dec 2024

CREATING A WIN-WIN FOR AUTO MANUFACTURERS AND SUPPLIERS: A STRATEGIC APPROACH TO COMMERCIAL MARGIN RECOVERY

In today's complex economic and geopolitical landscape, rising production costs are impacting margins across the automotive supply chain. Both OEMs and suppliers are feeling the strain, investing significant time and effort in negotiations and claims enforcement. However, information asymmetry and misconceptions often lead to inefficient processes, increased costs and dissatisfaction for both parties.

To thrive in this environment, strategic preparation for negotiations is crucial. This includes optimizing pain-sharing and proactive stakeholder management. A&M recently facilitated negotiations between a Tier-1 automotive supplier and a leading German OEM, resulting in a win-win outcome.

Learn about the key strategies that made this success possible in our first article in our series on how to build a fair and equitable cost-recovery relationship between auto manufacturers and their suppliers.

Read and download the full article here