The automotive world is an ecosystem of massive collaboration, and understanding its core players is essential for anyone entering the industry. At the top of the food chain are two critical entities: the OEM and the Tier 1 supplier. This relationship is the backbone of vehicle production, dictating everything from design to delivery.

To simplify this complex dynamic, think of it this way: The car manufacturer is the restaurant chef (the OEM), and the major component provider is the specialized catering company (the Tier 1). The chef designs the menu and plates the final meal; the caterer delivers perfect, pre-cooked courses ready for assembly. Our goal here is to explain simply who does what in the final vehicle assembly.

Defining the OEM (Original Equipment Manufacturer)

The OEM (Original Equipment Manufacturer) is the company whose name and badge appear on the car you buy—the brand (e.g., Ford, Toyota, … Continue reading >>>