In short, original equipment manufacturers (OEMs) and their partners find themselves in the middle of a frenzied race against time as they strive to meet the automotive industry’s environmental regulations as well as regulatory government on carbon emissions.

Entities like the International Automotive Task Force (IATF)comprised of automobile manufacturers and their respective national automotive industry associations, are playing an increasingly important role in this changing landscape by striving to raise product quality standards.

Take the example of automotive electronics – a market that was only recognized in the field of mobility towards the end of the 20th century. Projections indicate that by 2030, the global automotive software and electronics market will reach $462 billion, indicating a strong compound annual growth rate (CAGR) of 5.5% from 2019 to 2030 (McKinsey). This booming market is attracting a plethora of new players (many of which boast higher valuations than established OEMs!).

However, their knowledge of traditional automotive quality standards may be insufficient, leading to potential disparities in product quality and safety standards across the industry. There is also apprehension at the government level regarding data privacy, as “Big Tech” deepens its roots in automotive. Given these concerns, OEM compliance becomes not just a “nice to have” but a crucial part of operations.

The IATF establishes guidelines and rules for quality management system certification with its Tier 1 suppliers and subcontractors and their respective production processes. This ensures that, despite industry changes, a streamlined level of vehicle quality, safety and reliability is maintained throughout the supply chain. IATF 16949 certification, for example, provides for continuous improvement with a focus on preventing defects and reducing variation and waste in the supply chain.

These certifications also serve as a North Star for global OEMs. What do I mean by that? Having worked in the mobility field for nearly four decades, I can attest that beyond the convergence of traditional manufacturing and technology, one of the biggest features of this new automotive era is the collapse traditional silos to enable the creation of an ecosystem of new economic models anchored in collaboration. By adhering to standards set by international and regional regulatory bodies, companies can establish themselves as good candidates for this in-depth, real-time partnership work.

Our commitment to respecting and advancing OEM regulations

At Dow, we not only seek the latest certifications in our facilities, but also actively collaborate with our suppliers to improve their quality standards and engage with OEMs to shape regulatory frameworks. We are also actively working to raise awareness of the application of standards to bulk materials such as chemicals/fluids etc.

For example, our collaboration with a key OEM contributed to the development of the international IATF 16949 standard, a certification now owned by Dow, which supplies bulk materials to OEMs and other tier-one suppliers. This standard is extremely rigorous – and does not stand alone. It should be understood as a supplement to be used in conjunction with ISO 9001:2015 and ISO 9000:2015, as well as specific customer requirements. Having strong partners within your ecosystem and seamless interaction across business functions, from sales to material sourcing to design, provides a huge advantage as you work to manage risk and meet needs set out by these standards.

Regardless of your position in the supply chain, we must all remain committed to keeping pace with emerging standards. This is certainly a daunting challenge, but the potential for accelerating innovation is indeed enormous.

If you have any questions about Dow’s compliance work, the certifications we hold in our facilities, or how we work with our suppliers to streamline the quality of our OEM partners, please contact us by visiting https://www.dow.com/en-us/support.html.