What does automotive OEM mean?
1 Answers
Automotive OEM refers to suppliers manufacturing parts according to the requirements of automobile manufacturers. These parts can only be supplied to the automaker and its authorized 4S stores, and are not allowed to be provided to other automakers or markets outside the 4S system. Below are relevant explanations: 1. Basic definition: OEM fundamentally means original equipment manufacturing cooperation, commonly known as "white-label production". It means the brand owner doesn't directly manufacture products, but utilizes its mastered "core technologies" to design and develop new products while controlling sales channels. With limited production capacity or even no production lines or factories, to increase output and sales, reduce risks of establishing new production lines, or even to gain market time, they contract other manufacturers to produce the goods, purchase them at low prices, and directly affix their own brand labels. This outsourcing cooperation model is called OEM, the contracted manufacturer is called an OEM supplier, and the products are OEM products. 2. Cooperation models: ODM involves Party B providing technical requirements and commissioning Party A to produce according to these specifications, with Party B purchasing all products. It's a legal cooperative relationship based on contractual authorization. OBM refers to enterprises that manufacture products without their own brands, specializing in accepting OEM or ODM requests from other companies to produce white-label goods.
