TIER’S PROCESS (AUTOMOTIVE)

 

Thanks to the great consumption of primary products such as steel, plastic, aluminum and rubber, the automotive industry became a very important pillar for these products. The number of people employed makes it an industrial sector of great value for the economy of the countries.

The implementation of production models benefited the industry, which allowed them to manufacture larger quantities in times that they did not previously think could be achieved.

Over time, different automotive companies have merged to achieve global reach, where they compete for the market with increasingly advanced innovative designs and technologies.

The supplier companies of the automotive industry have been classified according to the position in the supply chain, the classification is known as “Tier”.

It is classified as follows:

OEM: Original Equipment Manufacturers; They are the companies that carry out the final assembly of the vehicle, the design and development of new products. They deal with the launch of the vehicle on the market.

Tier 1: Automotive parts and systems; Production of assemblies, components, collaboration in design and innovation develop solutions adapted to the finished vehicle, without making excessive modifications.

Tier 2: Non-automotive parts; They are the ones in charge of manufacturing for Tier 1 the necessary parts for the manufacture of suitable components.

Tier 3: Raw and semi-raw materials; Companies that supply raw and semi-raw materials for the manufacture of components (Tier 2).

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