Analysis

Tier 1 car makers benefit from cost-effective production

27th April 2015
Jordan Mulcare

 

AWS has announced that a major Tier 1 automotive manufacturer has awarded the company a contract for volume manufacture of its assemblies and systems at AWS' CEE facility in Slovakia.

AWS has continued to invest and grow the the Namestovo plant to take advantage of such opportunities with Tier 1 auto suppliers, benefiting from low cost manufacturing closer to their end user factories than South East Asia. The Slovakian facility uses exactly the same processes, equipment and management systems that AWS has developed for its UK plant, which also handles Fast Track and NPI business as well as through life MRO, thus ensuring consistent quality.

However, the total manufacturing costs in Slovakia are lower than some parts of the Far East, allowing cost-sensitive, high-spec volume orders to be accommodated.

“We have won several significant automotive programmes recently, which has led to very fast growth at our Namestovo facility in Slovakia”, commented Paul Deehan, CEO, AWS. “The latest deal is for LED lighting products that go into high end vehicles, so the business is both high volume and high quality. We expect to see a large amount of business, both from the automotive sector and elsewhere, reshoring to Europe as customers understand that it is possible to combine high quality and efficient cost models as long as you choose the correct manufacturing partner.”

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