PARADIGM SHIFT IN THE AUTOMOTIVE INDUSTRY

The automotive sector is one of the most

important industries of the modern era.
This sector has experienced since the last
decades a process of change and
accelerated evolution which has resulted
in the fragmentation of production.
Today Big Assembly Companies have low
participation in adding value to their
products however They develop an
outsourcing strategy. Companies have a
chain of suppliers that provide auto parts
according to quality standards applying
company and distributors who focus their trading on the requirements and objectives of the brand.
Control Vs Flexibility: the dilemma about the capacity of the company is presented.
The markets are more heterogeneous and this is mainly due to changing customer preferences that
determine the type of car, so it changed a model of mass production to mass customization model.
Just look at the commercials diversity of vehicle models on the market.
Toyota is an example of paradigm shift where is important the flexible production, deconcentration
of production, participatory management, horizontal structure among other approaches. In the field
of technology have added electronic systems allowing internet access, communication "hands-
free, hybrid systems.
This means automotive companies focus on the added value they offer their products and related
services. The company will not generate higher value if They do not satisfy the needs of their
consumers and the same time They do not reduce their costs.