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Tier 1 Supplier: The Basics of Automotive Parts Manufacturing

Tier 1 supplier makes parts for the carmakers

A Tier 1 supplier is a parts manufacturer that makes automotive parts under contract for one or more carmakers. The parts are to the carmakers specifications and quality testing protocols. Their  parts are installed at the car maker’s assembly plant and are designed to meet rigid Federal safety regulations.

The part they make are referred to as Original Equipment (OE) or Original Equipment Manufacturer (OEM) quality.

Tier 1 suppliers can’t sell the same products to auto parts stores; they’re bound by contract to sell only to the carmakers.

What is a Tier 2 supplier?

Tier 1 parts are often different than Tier 2 supplier parts that are sold at the car maker’s dealership. Tier 2 parts are referred to as Original Equipment Service (OES) parts. A Tier 2 supplier may manufacture those parts under contract by the carmaker or as a sub contractor to a Tier 1 supplier using different specifications and quality testing protocols than an OE part.

Tier 2 parts are designed to perform like an OE part but sell at a lower price. They may not be made of the exact same materials as an OE part and they may not meet the rigid Federal specifications required for new vehicles.

They are designed to sell at a more competitive price at car dealerships.

Example of a Tier 1 Supplier

Driveparts is the parent company of these aftermarket brands:

MOOG suspension and steering components, Champion spark plug, Wagner brake parts and Ferodo brake parts, Fel-Pro gaskets and seals, FP Diesel engine parts, Monroe shock absorbers and struts, National Oil Seals & Bearings, Sealed Power piston rings, and Walker exhaust products.

But they are also a Tier 1 supplier to most carmakers. Learn more about Driveparts here.

©, 2019 Rick Muscoplat

Posted on by Rick Muscoplat

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