Word: autoliv
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...recession of the early 1990s that got things boiling, especially in Europe. With profit margins pushed beyond the agony point, companies began letting their suppliers do more of the engineering and preassembly of integrated systems in increasingly complex cars. Air-bag makers like Sweden's Autoliv, for example, started buying up or forging partnerships with companies that make sensors, steering wheels and other related products and offering car companies complete, preassembled safety systems...
...fact, one of the reasons Volvo, which makes only 400,000 cars a year, was able to survive as an independent car assembler until this year was its innovative and extensive use of systems suppliers in previous years. A few years back, Volvo's engineers teamed up with Autoliv to develop safety systems that incorporated side air bags, and safety-minded Volvo got a one-year exclusive deal to use the systems. Going modular helped Volvo offer more flexibility on a limited range of basic models. "With the traditional assembly process, you can usually manufacture just one car per assembly...
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