What is a Tier 1 supplier?
A Tier 1 supplier is a parts manufacturer that makes automotive parts for the car manufacturer based on specifications and quality testing protocols provided by the car maker. Tier 1 parts are installed at the car maker’s assembly plant and are designed to meet rigid Federal safety regulations.
Parts supplied by Tier 1 suppliers are referred to as Original Equipment (OE) or Original Equipment Manufacturer (OEM) quality.
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 car maker 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.
©, 2019 Rick MuscoplatPosted on by Rick Muscoplat