Automotive industry trends affecting component suppliers. Report for discussion at the Tripartite Meeting on Employment, Social Dialogue, Rights at Work and Industrial Relations in Transport Equipment Manufacturing. Sectoral Activities Programme. Geneva, 2005. vii + 144 pp. Tables, figures, boxes, annexes. 15 Swiss francs. ISBN 92-2-116442-X.
This is the preparatory report for a tripartite meeting that was held at the International Labour Office from 10 to 12 January 2005 to examine the state of employment, social dialogue and industrial relations in the automotive components sector. Its main findings are as follows.
Auto parts suppliers are playing an increasingly important role in the automotive industry. Their current share of up to two-thirds of the value added of a car is expected to reach 75 per cent among some manufacturers. The worldwide employment breakdown between assemblers and suppliers, which is currently estimated to average 54:46 is likely to move towards a ratio of 33:66. Although developing countries accounted for only 12 per cent of world components exports in 1999, the increasing importance of suppliers will benefit emerging markets, particularly central and eastern Europe, China and India, allowing them to increase their share of global components production.
Viewed from the perspective of the importance of the automotive industry for a country's merchandise exports, the report also finds that automotive products accounted for over 20 per cent of exports in Canada, Cyprus, Japan, Mexico and the Slovak Republic, over 10 per cent in countries such as Belarus, the Czech Republic, Hungary, the Republic of Korea, Lithuania, Poland, Slovenia and the 15 countries of the pre-enlargement European Union, and almost 10 per cent in South Africa, Turkey and the United States. …