Carmakers seek price, innovation; Suppliers must offer better mousetrap, sell through strong...

Byline: ROGER SLAVENS

The automotive industry is one of North America's largest, with production of passenger cars and light trucks totaling approximately 16 million units in 2004 and with a purchase value of more than $500 billion. More than 60% of those vehicle costs are assumed by suppliers rather than the major carmakers, and that number will rise to more than 70% in 2010, according to the Original Equipment Suppliers Association.

These costs include design, development, engineering, testing, prototyping, packaging, logistics, tooling, capital, manufactu