ABM Q4 - Flipbook - Page 28
OP I N I O N
R E TA I L
Rewriting Western
supply chains
→ Ronald Kleijwegt is CEO at Vinturas
C
hinese companies have
invested in more than 130
European car parts makers
since the mid-2000s,
concentrating on the German
and French manufacturing
hubs that feed Europe's
biggest carmakers.
This signals a shift in
the way that modern automotives are
assembled and traded, with competition
now integrated into the way that
supply chains operate. It also leaves
manufacturers dependent on companies,
systems and infrastructures they neither
own nor designed, which makes the
ability to move information securely and
reliably an urgent challenge to resolve.
Trade measures have made owning
European production more valuable
rather than less.
Brussels added duties on Chinese
EV manufacturers in 2024 on top of
existing tariffs on car imports, and
local-content rules being planned will
require European-made parts and labour
for automotive assembly, so acquiring
an established local supplier delivers
compliance and market access without
the delay of building new manufacturing
and sourcing hubs.
Chinese domestic automotive sales fell
by a quarter in July, and have contracted
for seven consecutive months following
the phaseout of EV subsidies and a
decline in demand for fuel-powered cars.
This leaves manufacturers with capacity
their home market no longer absorbs,
and a stronger incentive to establish
themselves in the markets that will.
While tariffs have kept Chinesebranded vehicles largely out of the US,
more than 60 US-based automotive
suppliers are owned by Chinese
companies, according to AlixPartners,
holding stakes in around 5% of the
roughly 10,000 suppliers, covering
components like axles, airbags,
windshields and steering systems.
28
AUTOMOTIVE BUSINESS
Q4 2026
Manufacturers in both markets are
exploring alternative sourcing regions
and backup suppliers, and increasingly
building entirely different supply chain
operations so that they are not reliant on
a single geography. But diversification
is not as simple as switching suppliers.
Building new capacity requires reliable
access to raw materials, a skilled
workforce and infrastructure capable of
handling increased demand. When one
country restricts exports, others rush
to secure alternative trading partners,
creating a domino effect.
Moving too fast can result in red tape
and compliance issues in unfamiliar
markets, cash tied up in stock, higher
sourcing and transport costs, longer lead
times and more volatile planning cycles.
Supply chains that connect
Whether reshoring or connecting with
Asian supply chains, manufacturers will
be left coordinating logistics across more
partners than ever before.
This creates significant risk for an
industry that still exchanges data and
documents through emails, spreadsheets
and paper invoices, exposed to trading
disruptions, data breaches, reputational
damage and regulatory fines.
Chinese manufacturers scaling in
Europe inherit a logistics landscape
they did not design, while European and
American manufacturers depend on a
supply base they cannot see far enough
into. This shift isn’t something that can
be tariffed out of, and collaborative car
building is already firmly in motion.
The companies that adapt best will
be those that make their supply chains
interoperable, connecting digital systems.
This way, manufacturers, suppliers and
logistics partners can securely exchange
trusted information across multiple
continents, while retaining control of the
information partners and competitors
want to share, regardless of which
manufacturer sits on the other end.
