“Performance Community” — New Financing Solutions

Abstract

Automobile manufacturers (OEM) and automobile suppliers are increasingly in a way connected with one another, which deviates from a conventional and simple buyer-vendor relationship. Both partners are connected by agreements, obligations, rules and contracts in a way which often affects very profoundly the business models and processes of each other. Above all the transfer of value-added operations or tasks (e.g. engineering, R&D, logistics, distribution....) of the OEM towards the suppliers brings them more and more into an area of conflicts between internal and external factors. Their own processes, structures and strategies are affected accordingly or must be modified. At the same time also a transfer of risks and problems takes place. Additionally the financial situation is possibly not as healthy as it should be to handle large orders or projects. Traditional or classical fund raising methods may not cover all aspects of this specific situation. A closer look to alternative ways of financing in consideration of new partnering models is requested.