OEM in automotive industry

vehicle producers make use of level one and tier two suppliers to construct their particular vehicles.Car makers use level one and tier two vendors to build their particular automobiles.

Stockbyte/Stockbyte/Getty Pictures

Producers sometimes refer to companies inside their supply chain as level one and tier two companies. The terms suggest the commercial distance in commitment between your manufacturer and supplier. Although offer tiers can apply to any industry, the terms mostly describe manufacturer and provider relationships within the automotive industry.


An authentic equipment producer, or OEM, describes an organization that makes your final product the customer market. As an example, Ford and General Motors tend to be OEM businesses that produce vehicles, and Apple is some type of computer OEM.

Tier One

Level one organizations are direct vendors to OEMs. The term is particularly common when you look at the car industry and relates to major suppliers of parts to OEMs. Like, Sensata Technologies is a tier one supplier of exhaust gas detectors to automotive OEMs.

Tier Two

Level two businesses will be the key vendors to tier one suppliers, without providing something directly to OEM organizations. But just one organization is a level one supplier to 1 company and a level two supplier to some other company, or could be a tier one supplier for example product and a tier two provider for another manufacturer product line.

Various Other Tiers

Companies occasionally believe it is convenient to tell apart various other tiers. Level three companies are offer tier two businesses. Tier four organizations are the providers of basic garbage, like steel and cup, to higher-tier companies.

Other Meanings

The terms tier one and tier two are often used with somewhat various meanings or definitions. Including, organizations might use invoicing patterns to determine tiers. Businesses that distribute bills to OEMs are considered level 1 and organizations that distribute invoices to non-OEM companies are tier 2.



Automotive industry in France
Automotive industry in France

Today's automotive news
Latest blog posts
Car manufacturers in Europe
Car manufacturers…
2011 Volkswagen Phaeton…
Car Shock Absorber manufacturers
Car Shock Absorber…
Safely on your way With…
Cobra kit car manufacturers UK
Cobra kit car…
Pilgrim tend to be justifiably…
Auto Accessories manufacturers
Auto Accessories…
About EGR EGR Incorporated…
Expensive car manufacturers
Expensive car…
Bloomberg Information…
Search in blog
  • Electric charging stations in EU
  • Technology in automotive industry
  • Automotive industry in France
  • Latest News in automotive industry
  • Customer Satisfaction in Automotive industry
  • New technologies in automotive industry
  • It in automotive industry
  • Nanotechnology in automotive industry
  • Automotive industry India
Copyright © 2024 l www.ubmtechweb.co.uk. All rights reserved.