Automotive manufacturers increasingly use the concept of supplier integration. However, the concept often is attached with an increased dependency of the buyer towards his suppliers, which generates self-induced monopolies. The inherent erosion of efficient market mechanisms, combined with an increased supplier power due to consolidation processes, can lead for the manufacturer to a disfavoring profit redistribution. Recurring controversy in current buyer-supplier relationships show that pie sharing approaches need to be adopted to the concepts of supplier integration.
