Production by suppliers

Although the turnover and potential growth
in the automotive chain are attractive for
Dutch companies, less appealing is the
pressure on margins in the supply chain.
The intensity of the international competition
in the automotive market means that
every car manufacturer needs a well-oiled
chain behind it. The car makers are listed
companies and increasing profits is therefore
another aspect of the competition between
them.

Chain optimisation is a crucial factor
in this, and price plays an important role. It
is not unusual for suppliers to be required to
reduce their prices.