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OEM : Stronger together to face competition

While the concept isn't novel, Ronald Reagan's assertion that "By working together, pooling our resources and building on our strengths, we can accomplish great things" gains new significance in the automotive industry with the revelation of yet another partnership among car manufacturers. Historically, rivalry has been a cornerstone of the automotive sector, but this decade has witnessed the dramatic entrance and multiplication of new players: Chinese automakers.


Despite sanctions from the EU and the US, the relentless advancement of Chinese brands continues, propelled by lower labor costs and an assertive approach to research and development. In an increasingly crowded market, companies like Mitsubishi, Nissan, and Honda are contemplating a union to consolidate their research and development efforts, leverage their collective strengths, and present a united front against the rising Chinese presence. This move, while familiar, could have a profound impact on our market, as it is likely to escalate the already prevalent practice of parts sharing.


This trend is not exclusive to these companies; the Volkswagen Group has been a long-standing proponent, while Stellantis, though newer, has quickly established itself as a formidable entity. Both groups embrace the strategy of shared research and development and platforms to reduce costs and sustain profitable operations. This shift, intensified by the emergence of new competitors, heralds additional opportunities for parts sharing, but also presents significant challenges in parts procurement. While the practice of using interchangeable glass parts across different car models is common—often labeled as "same as" in our product information—the growing prevalence of such components will make it increasingly difficult to identify them, ensure they meet OEM specifications, or discern the subtle differences (such as equipment, options, ADAS systems, etc.) that could be crucial to your customers.


We take pride in manufacturing parts that meet OEM standards, but we recognize that this diversity can be perplexing. Therefore, accurate identification is more crucial than ever to delivering the highest level of customer service. For assistance, you can count on Eurocodes, our Vinsearch service, or our dedicated customer service team.


In essence, in an era marked by relentless transformation and obstacles, AGC ARG aspires to be more than just your supplier; we aim to be an integral partner in your success.