DNA India reports that Tata is making a concerted effort to source parts for Jaguar and Land Rover from low cost countries like China, India (duh!) and Poland. DNA’s source for this claim said: “Earlier, Ford used to procure 17 percent from low-cost countries like Poland, China and India, whereas Tata Motors is planning to increase it to 35 percent.” Tata has buys more than just cheap parts. They outsourced low-end design and development work to lower-wage countries. But before you start the “If you thought JLR reliability was bad now…” don’t get too carried away.
BMW recently signed a $170m contract with the Mando Corp, a South Korean company to supply brakes to the Munich based car maker. This is in addition to 11 other South Korean suppliers which BMW already has on their list. Cars from nearly all manufacturers are up to their headliner full of Asian parts. Suppliers from low cost countries are here to stay. The question is, will their customers keep the quality of the items supplied in check? After all, if you make something to specifications, you’ve been set, what else can a supplier do?