AUTOMOTIVE
Tier 1 Major Diversified
World's Most Productive Companies
Diversified Tier 1s in a Changing Automotive Landscape
The Tier 1 Major Diversified Peer Group of Tier 1 suppliers develops, manufactures, and supplies a wide array of high-tech components, modules, and systems for original equipment manufacturers (OEMs). Their product portfolios are extensive and diverse, covering areas such as powertrains, electronics, safety systems, interior components, and thermal management. These companies are at the forefront of the automotive industry's major technological transitions, including electrification, autonomous driving (advanced driver-assistance systems or ADAS), and connectivity.
Major market influences that shaped 2019–2024 include the accelerating global shift to electric vehicles (EVs) and ADAS, global semiconductor shortages, COVID-19 pandemic disruptions, rising inflation and raw material costs, and intense competition from new technology entrants. Productivity was impacted in 2024 due to lower vehicle production and slowing EV sales, resulting in underutilized factory capacity, while electrification and ADAS advanced. UAW strikes, Red Sea shipping delays, Euro 7 emission standards, and tariff actions further affected volumes, costs, and sourcing.
Top 100 World's Most Productive Companies - Tier 1 Major Diversified
Productivity Snapshot
These Major, Diversified 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 for the sector grew overall by 15.7% over the last six years, a strong performance compared to most other peer groups and industries.
- All of these companies had negative productivity growth in 2023 and 2024.
- 2024 Productivity declined by an average of 5.5% across these companies.
- Valeo earned its position within the LNS 2025 World’s Most Productive Companies by growing productivity 18.8% over the last six years, outperforming its peers by more than 19.9% over the same period. Valeo’s leading productivity performance is driven by its strong position in electrification and Advanced Driver-Assistance Systems (ADAS), and a focus on operations as seen in its commitment to the company’s "Valeo Production System" (to standardize state-of-the-art production processes globally) and investments in a digital transformation of its supply chain.
