April 28, 1997 (Ann Arbor, MI) -- Automotive suppliers who expect to benefit from partnering with another supplier should be prepared to work through many challenges, according to a new study from The Automotive Consulting Group, Inc. (ACG).

Winning Strategies For Supplier Partnering examines 185 partnerships, defined in terms of mergers, acquisitions, joint ventures, licensing agreements and strategic alliances, among 131 automotive suppliers to identify those attributes that contribute to a successful partnership. Issues covered include the types of agreements, reasons for partnering, up-front preparation, level of commitment, balance of power, type or amount of interaction, cultural differences, and partnering with competitors.

"With the number of partnerships being formed, we felt it was important for companies to understand the many issues they must address both in preparation of and in managing the venture," said Dennis Virag, ACG's President. "This study was undertaken to provide strategic insight and direction to companies contemplating a partnership or involved in a partnership."

"Successful partnerships don't just happen," said Virag. "The companies that are successful today have learned through trial and error. Our study will help accelerate the learning curve by providing lessons learned."

Several key study findings are:

	Suppliers involved in successful partnerships tend to do considerably more up-front research on potential partners.
	Companies which take on the additional workload that often comes with a partnership are generally more likely to be involved in a successful partnership.
	Highly successful partnerships most often have top executives who actively support the partnership.
	Companies with different cultures and managerial styles can have a successful partnership if they manage the differences properly.
	Some of the most successful partnerships are formed between traditional rivals who have approached the partnership with "cautious trust."

he Automotive Consulting Group is recognized as a leading management consulting firm serving the global automotive industry. Specializing in strategic market positioning, technology planning and business performance improvement, the company helps clients through a combination of industry analysis, project consulting and management support.

Companies wanting more information on the report, Winning Strategies for Supplier Partnering, should call ACG at (734) 973-1110 or email us at acg@autoconsulting.com.