The automobile was created in Europe 128 years ago. Since then, a large automobile industry has been established with a wide range of automobile manufacturers, suppliers and after-sales services. An industry can be defined by Stigler as follows: “an industry should encompass the largest geographic area and widest variety of productive activities in which there is strong long-term substitution” (Lipczynski and Wilson et al., 2005) . The automobile industry dates back to Henry Ford, who was responsible for developing the assembly line technique of mass production that allowed the American middle class to afford vehicles. However, despite its impact, Ford's competitive advantage was short-lived and was quickly regained when Alfred P. Sloan of General Motors sensed that consumers wanted more variety than what was being offered to them and he offered "a car for every wallet and every goal” (Holweg, 2014). , p.14). Customers soon had a choice with a wider range of products including cars in different colors, unlike Ford's standard black car. Employment Europe is the largest automobile producing region with nearly 20 million vehicles assembled in 2001. It is the largest market in the world. in terms of size and competition is intense. The automotive industry accounts for up to a third of European manufacturing jobs. In any industry, it is the jobs it generates that provide the greatest help to the economy. Employment spillovers from the automotive industry are quite significant, with many industries supplying automotive producers and retailers. Direct employment, indirect employment and exports contribute to a growing and prosperous economy. Employment in the UK car industry is in decline...... middle of paper ......s such as 'build to order' (BTO) link production to customer demand, in building a car to a specific customer order within three weeks or less and without accumulating unsold inventory Renault, Nissan, BMW and Volvo have implemented such programs and reported success. Companies build long-term, collaborative relationships with their suppliers rather than switching opportunistically. This means that they do not base their supplier decisions entirely on cost, but seek to build relationships with their suppliers in order. to be able to understand and try to help company strategies achieve their goals Manufacturers have recently relied heavily on outsourcing, requiring suppliers to provide design and assembly assistance to match the. evolving variety of products that manufacturers try to offer their customers and bring their new innovative ideas to life..