Foreign Direct Investment in Latin America and the Caribbean 2017

98 Chapter II Economic Commission for Latin America and the Caribbean (ECLAC)
The geographical restructuring of production did not only affect vehicle manufacturers,
since far-reaching changes were generated among other agents in the production chain.
First, there were significant changes in the leadership and origin of the main suppliers
(see annex II.A4). In 2000, 40 of the world’s 100 largest suppliers were United States
enterprises, and they generated about 47% of sales in this group (see figure II.7). Since
then, the structure of the market has changed rapidly, however. While United States
firms are now less prominent among major international suppliers —badly hit by the
impact of the financial crisis— German and Japanese companies have gained ground.
Among the top 100 global suppliers, the number of United States firms fell from 32 to
25 between 2005 and 2015, bringing their share of total sales down from 34% to 18%.
In contrast, while the number of Japanese and German players remained relatively
constant during this period, they increased their share of the total sales of the world’s
100 largest suppliers to 29% and 25%, respectively, in 2015. Lastly, important new
players have emerged, particularly firms from China, India and the Republic of Korea,
which were virtually absent 15 years ago.
Figure II.7
World’s 100 largest suppliers of components to vehicle manufacturers, by number of firms, sales
and enterprise origin, 2000-2015
(Percentages)
Number of firms
Sales
20
16
19
30
18
4
14
4
40
25
2000 2015
9
19
16
14
4
47
29
25
13
6
18
2000 2015
9
}
Important new actors emerge (firms in
China, India and the Republic of Korea).
Japanese and German firms increase
their share in the total sales of the
world’s 100 largest suppliers, to 29%
}and 25%, respectively, in 2015.
}
The number of United States firms falls
from 40% in 2000 to 25 in 2015, and their
share of total sales falls from 47% to 18%.
Other Asian countries
Japan
Germany
Other European countries
Other North American countries
United States
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of Automotive News, “Top 100 global OEM parts suppliers. Ranked on 2000 global
OEM automotive parts sales”, Detroit, June 2001 [online] https://www.autonews.com/assets/PDF/CA27371020.PDF; “Top 100 global suppliers: the top 100 global
OEM parts suppliers ranked by 2005 global OEM parts sales”, Detroit, June 2006 [online] https://www.autonews.com/assets/PDF/CA99567518.PDF; “Top 100 global
suppliers: the top 100 global OEM parts suppliers ranked by 2010 global OEM parts sales”, Detroit, June 2011 [online] https://www.autonews.com/assets/PDF/
CA74326610.PDF; “Top suppliers: North America, Europe and the world”, Detroit, June 2016 [online] https://www.autonews.com/assets/PDF/CA105764617.PDF.
Second, despite maintaining a strong presence in their region of origin, parts, accessories
and component suppliers rapidly expanded the geographical diversification of their sales,
accompanying the internationalization process among vehicle manufacturers. Between
2005 and 2015, for example, Germany’s Robert Bosch GmbH grew its worldwide sales to
vehicle manufacturers from US$ 28.4 billion to US$ 44.825 billion —reducing its European
share from 69% to 47%, while practically maintaining its presence in North America (17%
versus 20%), but expanding significantly in Asia (from 14% to 31%) (see figure II.8).