Size matters in the new supplier world. In order for firms to sit at the table with automakers, they must be able to offer entire catalogs of parts - effectively becoming one-stop sources for components and technology. Besides broadening their product lines, merging suppliers can reduce overhead and extend their technical resources. Buying a company in Germany enables a U.S. supplier to devote more people to the European parts of a global vehicle platform. But to get there, they must merge and acquire.
FUTURE SCENARIO NO. 1: THE BIG HAIRY GOBBLE
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