The chain in China

North American suppliers must confront some challenging supply-chain issues as they take aim at what could potentially become the world's largest automotive market.

Almost daily, it seems, new plans are announced by the world's automakers to establish or expand manufacturing operations in China. And to support their customers' goals and capitalize themselves in this burgeoning market, suppliers are following suit.

Projected growth figures for China help to explain the proliferation of foreign automotive players. Total vehicle sales grew from 1.43 million units in 1995 to 3.26 million units in 2002, and surpassed 4 million units in 2003. According to KPMG Transaction Services' China Automotive Component Parts Market report, annual sales are expected to reach 7.0 million units in 2010 and 8.9 million in 2015.