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Recently Brazil’s automotive industry has attained a reasonable performance as a worldclass player in the assembly of automobiles. In 2007, 2.97 million units were assembled. This result is 13.9% higher than that achieved in 2006 and represents the best result of the sector, according to ANFAVEA (National Association of Motor Vehicle Manufacturers; Brazil) (2008). In 2007, Brazil ranked as the world’s sixth largest vehicle manufacturer, outranking France and Spain. The world’s largest producer in 2007 was Japan, followed by the United States, China, Germany and South Korea (ANFAVEA, 2008). Specialists point to the rapid rise of emergent markets among the world’s largest vehicle manufacturers, especially the case of China (LUNG, 2000). Since the mid-1990s, several productive arrangements have been implemented in Brazil’s automotive sector, among them the modular consortium and industrial condominiums. These arrangements are characterized by high levels of outsourcing, long-term contracts, integrative agreements, coproduction of components, exchanges of specific resources, information interchange, and support to suppliers. These practices have led to substantial modifications in the relationship and in the measurement of performance among the actors in the supply chain (McCORMACK, LADEIRA & OLIVEIRA, 2008; LEE, KWON & SEVERENCE, 2007; FYNE, VOSS & VURCA, 2005). The relationship standard between automakers and suppliers is a central aspect of the new strategies of the automotive sector and it supports the process of internationalization of automakers and suppliers. Cooperation and partnerships with suppliers are also forms of capturing resources (Gulati, 1999; Gnyawali & Madhavan, 2001) and of minimizing uncertainties (Friedberg & Neville, 1999), which are such prominent characteristics for the insertion of companies into the global market. Automakers use these strategies to implement new plants in emergent markets. Brazil is an attractive country due to the rapid growth of the automotive market, lower cost production units, accelerated growth of driving rates (LUNG, 2000), and privileged fields for new organizational and labor experiments (Humphrey et al., 2000). However, the vulnerability of these markets requires that automakers adopt adaptive strategies that are able to reach domestic and export markets, allowing for economies of scale and scope (Lung,

An Analysis of the Automaker-Systemist Supplier Relationship in an Automotive Industrial Condominium