OEM-TIER1

OEM = automaker, Tier 1 = direct supplier.

Definition

A Tier 1 supplies the assembled module (complete seat, dashboard, braking). It communicates via VDA 4905/4906 EDI or ODETTE OFTP with the OEM. Typical Tier 1: 40-60% of vehicle material cost. IATF 16949 standards mandatory.

Origin

Terminology born in the 1980s with Toyota and Ford supplier chain rationalisation.

Example in context

Faurecia (Tier 1) supplies the complete dashboard to Stellantis (OEM) ; seats arrive in JIT/JIS.

Related terms

• Tier 2/3 — upstream chain.