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Definition:
- An OEM is a company that designs and builds vehicles and sells them under its own brand name.
- In the automotive industry, OEMs are the major car makers like Toyota, Ford, BMW, Volkswagen, etc.
In practice:
Example: Bosch supplies braking systems to BMW (OEM), which then installs them in cars sold under the BMW brand.
OEMs assemble the final vehicle.
They rely on a network of suppliers to provide thousands of parts (engines, brakes, electronics, seats, etc.).
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