Global sourcing in the automotive supply chain The case of.pdf

Global sourcing in the automotive supply chain: The case of Fiat Auto “project 178” world car Arnaldo Camuffo and Giuseppe Volpato Ca’ Foscari University of Venice, Italy e-mail: camuffo@unive.it e-mail: volpato@unive.it 1 International Motor Vehicle Program – MIT Globalization Research Global sourcing in the automotive supply chain: The case of Fiat Auto “project 178” world car Arnaldo Camuffo and Giuseppe Volpato Ca’ Foscari University of Venice, Italy e-mail: camuffo@unive.it e-mail: volpato@unive.it Abstract Objective of this paper is to present how Fiat Auto has developed a peculiar and innovative global sourcing model in conjunction with the rolling out of its world car project “178”. Differently from other OEMs, that have designed vehicles with common global underbody platforms adapting body, trim levels and ride characteristics to local conditions, Fiat Auto world car concept and globalization strategy is more ambitious and complex, since the standardization of the 5 models stemming from the 178 platform involves absolute cross-country identity not only of interior/exterior design and contents but also of quality levels, robustness and compliance with European rules in terms of safety and pollution. The international supply chain supporting this globalization process can be interpreted as a double network of operations and transactions: the “internal” supply chain, where makes are exchanged between Fiat Auto plants; the “external”