Recent developments

The last meeting of the transport equipment manufacturing sector was held in Geneva from 10 to 12 January 2005 and focused on the automotive supplier industry. A background report Motor vehicle industry trends affecting component suppliers (pdf, 638k) and annexes (pdf, 151k) give an overview of recent developments in the automobile industry and of the automotive parts industry in particular. The meeting discussed social dialogue including industrial relations, freedom of association, collective bargaining and International Framework Agreements, as well as aspects of the decent work agenda, skills development and occupational safety and health. The meeting was organized around a series of panel discussions. A set of conclusions were adopted and a Note on the proceedings published.

World motor vehicle production by company (2005 data)
Source: ILO, based on International Organization of Motor Vehicle Manufacturers (OICA) Statistics Committee, June 2006.

While much is known about the final assemblers of automobiles, less is known about their supply chain which provides up to two-thirds of the components used to assemble the vehicles. The manufacture of automotive parts involves many types of enterprises in different relationships with the manufacturer/assembler of the final product, from subsidiary companies to contractors and subcontractors and SMEs in export processing zones. While the first tier suppliers concentrate on a specific component - chassis, interior, exterior, electronics, etc. - each of these are further supplied by second and third tier contractors.

Major first tier suppliers include Robert Bosch in Germany, Delphi, Visteon and Johnson Controls in the USA, Valeo in France and Denso in Japan, plus companies such as Lear, Magna International, TRW, Dana, Siemens VDO, Autoliv, etc.

World motor vehicle production by country (2005 data)
Source: ILO, based on International Organization of Motor Vehicle Manufacturers (OICA) Statistics Committee, June 2006.

The ILO held a Tripartite Meeting on the Social and Labour Impact of Globalization in the Manufacture of Transport Equipment in May 2000 on the basis of a background report entitled Social and labour impact of globalization in the manufacture of transport equipment. A Note on the proceedings (pdf, 298k) is also available.