Abstract
This chapter evaluates the qualitative data obtained from the semi-structured in-depth analyses of the interviews conducted with 19 top-executives of the 11 AMMs operating in Turkey (DAMM), based on major topics and interview sub-sections. This chapter is composed of seven sections. In the first section, general information on the AMMs interviewed is presented. In the next three sections, we analyze the characteristics of the AMMs operating in Turkey; their cooperation activities with multinationals (global AMMs) as their foreign partners; R&D and technology-related activities and channels of the transfers realized by multinationals to the AMMs at intra-firm level. In the fifth and sixth sections, we detail the relations of the AMMs with their direct suppliers operating in Turkey, and analyze and evaluate the channels and determinants of the transfers at inter-firm level realized by the AMMs to their direct suppliers through backward linkages. The seventh section contains the results of the SWOT analysis of the industry in terms of the transfers based on the findings obtained in the framework of the study. In the analyses, similar views put together for the sake of keeping the identities of the AMMs interviewed confidential, and the findings are enriched with the viewpoints considered significant, as well. The interviews made with the top-executives of the AMMs took 32h in total, and the text content of 447 pages were decoded following the interviews. The findings obtained from the interview analyses are also used for the quantitative survey results on supply industry attained in Chaps. 4 and 5 in a complementary way. Since there is no other similar study conducted in the industry on this subject as far as we know, no comparison of the findings could be possible. The findings tried to be put forward herein are the first findings concerning the industry and therefore are of major significance. In addition, they could contribute to more extensive, similar studies yet to follow, setting an example for them.
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- 1.
See Sect. 3.7.3 for the decription of OAMM.
- 2.
Whereas some global AMMs specialize only in the personal car product range, some others specialize in both personal car and commercial vehicle product ranges.
- 3.
It is determined that these companies have several license agreements with various multinationals abroad in order to produce and/or assemble some imported systems/parts (especially powertrain parts) in their vehicles.
- 4.
Such parts (gearboxes, differentials, brakes, suspensions, axles, etc.) are imported from the partner MNC in general.
- 5.
For example, Japan is the headquarters for Toyota and Anadolu-Isuzu, Germany is the headquarters for both M.A.N Türkiye and Mercedes-Benz Türk, and France is the headquarter for Renault.
- 6.
Two of the AMMs with domestic-capital manufacture also armoured vehicles and tanks in cooperation with Aselsan, Roketsan and MKE, under the scope of the defence industry. Such types of vehicles are designed and developed domestically and manufactured by obtaining relevant licenses. It has been determined that the AMMs have accumulated significant design, R&D experience and know-how via such projects.
- 7.
Two of the AMMs have underlined the fact that some of the critical and major parts which cannot be procured from the suppliers are manufactured in-house.
- 8.
The manufacturing process from scratch is composed of the following phases: conceptual design, detailed design, design verification, developing, prototype, and tests for quality and durability, pre-production tests, serial production and post-production tests.
- 9.
One of the multinationals has the only partner company in the bus class located in Turkey, manufacturing buses under their own trademark only in Turkey together with their local partner and exports them to the world.
- 10.
Raw materials, intermediate goods, etc.
- 11.
Such as Toyota Production System (TPS).
- 12.
There exist agreements on engines, concluded both currently and in the past among global AMMs (such as ISUZU, GM, TOYOTA, NISSAN, MAZDA, RENAULT, AUDI, VW, BMW, and OPEL). The latest of these is the mutual collaboration agreement on electrical vehicle systems and diesel engines, concluded between TOYOTA and BMW at the end of the year 2011. That’s why the same engines, same safety systems, etc. are seen in different global brands. Similarly, many car manufacturers could use the brake, air-conditioning, airbag, etc. systems produced by the same global-mega suppliers.
- 13.
The universities from which such collaborations are provided are basically ITU, METU, Uludag and Marmara.
- 14.
Activities such as establishing the production lines and production processes of the plant, developing new products, designing new models, R&D activities, and improving the existing products.
- 15.
Such as Toyota Production System (TPS) of TOYOTA also known as KAIZEN, Manufacturing Management System (IMM) of ISUZU, Total Quality Management, and Lean Management Systems.
- 16.
All vehicles will be at the required quality standards; efficiency will be at the highest level; work that does not generate any added value will be removed; it will be ensured that no loss occurs in the production; the parts supply methods (JIT) and the safety of the workers and work will be at the highest level achievable; and problems and occupational accidents will be at minimal levels. The main philosophy could be summarized as “manufacturing the best vehicle in the shortest time, at minimum cost, and in compliance with the quality standards set forth”.
- 17.
Monitored by means of indicators such as DPM (delivery per million) and PPM (parts per million).
- 18.
It is determined that in the AMMs that have an R&D center within the framework of the R&D Law No. 5746, the cost of such training activities are met from the R&D center’s own budget, or included in the projects realized at such centers. It is also expressed by the AMMs that one of the requirements to be met by the R&D centers is continuous training and self-development.
- 19.
For example wind tunnel, durability, crash, exhaust-emission, aerodynamics and road tests.
- 20.
The limit dimensions of the part which it should have with respect the whole vehicle design.
- 21.
It has been determined that making the design, assembly and crash tests of a vehicle completely has become possible in a computer environment, thanks to the software such as CATIA, ROBCAD, CAD, CAM, and CAE.
- 22.
Such parts are called system parts while the companies who manufacture and provide them to the AMMs are called system suppliers. System suppliers also assume the whole responsibility (warranty, etc.) for the product, following the sale of that product.
- 23.
It has been pointed out that the Turkish supply industry is a robust industry in terms of parts production, especially in sheet metal parts manufacturing and plastic injection activities.
- 24.
Some domestic direct supplier firms with foreign capital could concurrently produce parts for the multinationals abroad (global AMMs) such as BMW, MERCEDES, RENAULT, JAGUAR and FORD.
- 25.
It is observed from the interviews that in cases where a supplier constantly falls behind in terms of quality, or fails to deliver the parts in a timely manner, or fails to achieve the defined targets in terms of costs, or fails to reach the levels requested and/or scores extremely low points during the inspections, or experiences commercial and financial problems, or fails to meet the requirements concerning the product and production process, the AMM warns the supplier severely and grants him a certain period of time to correct his shortcomings and finally parts ways with the direct supplier firm if the problems will not be resolved within the given period of time despite all the warning. All these findings overlap with the findings in Sect. 4.7.3.
- 26.
Departments such as purchasing, supplier relations, quality, engineering, and supplier development.
- 27.
It appears highly difficult for a domestic supplier currently not working with any other AMM in Turkey to become a new direct supplier of the AMM concerned.
- 28.
The partnership structure, capital, turnover, R&D and design capabilities, quality and work systems, the quality certificates the firm possesses (ISO9000, ISO14000, ISO/TS16949, etc.), human resources, the projects performed before, etc.
- 29.
It is an important working principle of the Toyota Production System and means go and see.
- 30.
When selecting the supplier firms who will manufacture in these parks, what is considered and taken into account is that the parts to be supplied are of a fairly large size and that the logistics cost increases in case of an emergency.
- 31.
In this system, the transport of the parts to be supplied is assumed by the AMMs due to the advantages in terms of cost, time and procurement. An 18-wheeler belonging to the AMM visits the suppliers in turn every day and carries 1- or 2-day stocks to the AMM.
- 32.
Some of the AMMs have stated that they themselves had brought their overseas suppliers in Turkey.
- 33.
It has been determined that once the AMMs have an R&D department, their co-design activities with suppliers increase.
- 34.
The AMMs could provide the suppliers with various financial assistance in cases where the equipment pool of the part to be manufactured requires high amounts of investment or in cases where the die cast of the part to be manufactured is costly.
- 35.
These specialists are called “supplier quality engineer” or “supplier technical assistant”.
- 36.
The specialists are assigned duties at the departments such as purchasing, quality, and supplier development.
- 37.
Since it is a matter of serial production, the quality of the parts to be mounted onto the vehicles is not inspected generally on the production line. Quality control exists at every stage of the production process but the inspections and audits are performed from scratch. During such audits, the suppliers are monitored on weekly, monthly and annual basis via the indicators such as timely delivery under the scope of DPM (delivery performance management) and defect-free product procurement in PPM (parts per million). Less than 100 ppm for the personal cars and less than 500 PPM for the buses is accepted as standard.
- 38.
Such categorical classifications vary among the AMMs.
- 39.
Auditors from the departments such as purchasing, quality, production, supplier relations, and supplier development.
- 40.
Departments such as purchasing, supplier relations, and supply industry development.
- 41.
These criteria may be summarized as follows: No problem encountered concerning supplier’s delivery on time during the course of that year; no return of any product due to quality problems; supplier’s scoring high or acceptable points as a result of the audits; supplier’s success in drawing their costs back to the predetermined price levels; and supplier’s success in increasing the productivity.
- 42.
Suppliers are awarded for three ranks: gold, silver and bronze awards. Certificates, plaques, letter of commendation, etc. are given as awards.
- 43.
It is necessary to question the suppliers in order to ensure how much these situations reflect the reality.
- 44.
Although the terms “training” and “education” are generally used interchangeably, they are not the same at all. Companies may use both terms depending on their activities. Training simply refers to the practical activities in order to gain skills in the best use of new equipment, while education refers to teaching activities to help someone solve a problem.
- 45.
Quality engineer, quality group leader, supplier production management or quality engineer, etc.
- 46.
Second and third-tier suppliers.
- 47.
Since the AMMs have more extensive contacts and communication channels abroad compared to the domestic supplier firms because of the fact that they are included in the production networks of the multinational, they could develop business relations with the companies abroad more easily.
- 48.
With regard to this subject, see also SPO (2007), MITI (2010, 2011), and various TAYSAD (http://www.taysad.org.tr) and OSD (www.osd.org.tr) publications on the industry, as well as Wasti, Kozan, and Çınar (2009) and Erdil, Pamukçu, Erden, Göksidan, and Kepenek (2011).
- 49.
It is a process widely used in the automotive industry and refers to complex simulation and development projects for the manufacturing of a new vehicle. It is defined in business dictionary as “concurrent new product development through employing cross-functional teams to reduce cycle time” (see www.businessdictionary.com).
- 50.
China, India, South Korea, Thailand, Malaysia and East Europe countries (such as Bulgaria, Slovakia, Hungary, Romania, Czech Republic, and Poland).
- 51.
In the developed and some developing countries, for instance, municipalities and various governmental organizations create a demand for the new products via billion-dollar tenders and guarantees purchase, for the purpose of encouraging and promoting new technologies involving high investment costs; and international institutions offer highly favourable loans and financing means and facilities for production of such technologies, too.
- 52.
It has been determined that approximately 80 % of the vehicles manufactured in Turkey by M.A.N, Mercedes-Benz Türk, TEMSA, OTOKAR, B.M.C and ISUZU is exported to the EU countries. This could be regarded as a highly significant criterion in that it clearly shows the development level of the bus and commercial vehicle production especially and the achievement of the Turkish automotive industry across Europe.
- 53.
Ensuring compliance with the regulations of the EU is considered vitally important since the most important exportation market is composed of the EU countries. Such regulations affect each and every stage; from planning of the vehicle to its design and production. Therefore, there exist AMMs that have separate departments focused on the EU regulations.
- 54.
Industrial designs, 3D analyses, finite element analyses, durability tests, etc.
References
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Sönmez, A. (2013). Findings and Analysis of the Interviews. In: Multinational Companies, Knowledge and Technology Transfer. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-02033-4_6
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