AUTOMOTIVE
Tier 1 Chassis, Thermal and Electronics
World's Most Productive Companies
Navigating Volatility in Core Tier 1 Vehicle Systems
These Tier 1 suppliers primarily sell to light-vehicle OEMs, compete for program awards, and operate in a capital-intensive, low-margin industry where volumes, mix, and commercial terms with automakers significantly influence outcomes. Their portfolios are integrated into core vehicle systems, including sealing and fluid handling, driveline and e-propulsion, wiring harnesses and connectivity, steering and columns, and electronic modules and sensing. As a result, revenue tracks vehicle builds and platform launches across North America, Europe, China, and emerging markets. They share exposure to industry trends like electrification, supply chain volatility, and OEM pricing power, which necessitate continuous investment to adapt their product portfolios and production processes.
The period from 2019 to 2024 was marked by pandemic shutdowns, a prolonged chip shortage, volatile freight and energy markets, and sharply higher interest rates, alongside shifts in electrification and trade policy. These forces constrained builds, raised costs and working-capital needs, and complicated sourcing and localization decisions for auto suppliers tied to OEM production schedules.
Top 100 World's Most Productive Companies - Tier 1 Chassis, Thermal and Electronics
Productivity Snapshot
These Tier 1 suppliers experienced a similar productivity trend to many other industries and peer groups: a surge in productivity from 2020 to 2023, followed by a regression to declining productivity in 2023 and 2024.
- Productivity in the sector has grown overall by 13.3% over the last six years. This segment, like automotive generally, performed well above the average for manufacturers represented in the IPI.
- All of these companies had negative productivity growth in 2023 and 2024.
- 2024 Productivity declined an average of 5.9% across these companies.
- Cooper-Standard Holdings Inc. earned its position within the LNS 2025 World’s Most Productive Companies by growing productivity 16.4% over the last six years, more than 23.5% above the average of the Peer Group. Their leading productivity performance is driven by leveraging the proprietary operating model (Cooper Standard Operating System) across regions and functions, lean rollouts, divestitures of low-productivity units, shared digital systems, and investment in advanced materials design.
