The squeeze of auto parts firms into a smaller pool has one clear side effect: Instead of doing business directly with automakers, many large suppliers will be doing business with other suppliers. If, as commonly predicted, automakers plan to use major module suppliers in the future - for interiors, powertrain, body, etc. - hundreds of parts makers will be pushed away from their traditional sales relationships. That will raise new questions for suppliers in how they market themselves and how they pair up with other component producers. Some analysts foresee a more controlled system of supply-chain networks, more similar to Japan's keiretsu system.
FUTURE SCENARIO NO. 2: GOING TIER 2
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