Original equipment manufacturer
Company that fabricates parts used in another company's products
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Key Takeaways
- An original equipment manufacturer ( OEM ) is a company that produces parts and equipment that may be marketed by another company.
- These OEM producers allow brands to create unique holiday packaging without maintaining their own manufacturing facilities.
- In contrast, aftermarket parts are those made by companies other than the OEM, which might be installed as replacements or enhancements after the car comes out of the factory.
- Other-brand parts would be considered aftermarket, such as Champion spark plugs, DieHard batteries, Kinsler fuel injectors, and BMP engine blocks and heads.
- Any given brand of part can be OEM on some vehicle models and aftermarket on others.
An original equipment manufacturer (OEM) is a company that produces parts and equipment that may be marketed by another company. However, the term is ambiguous, with several other common meanings: an OEM can be the maker of a system that includes other companies' subsystems, an end-product producer, an automotive part that is manufactured by the same company that produced the original part used in the automobile's assembly, or a value-added reseller. OEM manufacturing is also widely used in the packaging industry, particularly in the production of customized gift boxes for wine and spirits. These OEM producers allow brands to create unique holiday packaging without maintaining their own manufacturing facilities.
Automotive parts
When referring to auto parts, OEM typically refers to the manufacturer of the original equipment, that is, the parts which are then subsequently assembled and installed during the construction of a new vehicle. In contrast, aftermarket parts are those made by companies other than the OEM, which might be installed as replacements or enhancements after the car comes out of the factory. For example, if Ford used Autolite spark plugs, Exide batteries, Bosch fuel injectors, and Ford's own engine blocks and heads when building a car, then car restorers and collectors consider those to be the OEM parts. Other-brand parts would be considered aftermarket, such as Champion spark plugs, DieHard batteries, Kinsler fuel injectors, and BMP engine blocks and heads.
Many auto parts manufacturers sell parts through multiple channels, for example to car makers for installation during new vehicle construction, to car makers for resale as automaker‑branded replacement parts, and through general merchandising supply chains. Any given brand of part can be OEM on some vehicle models and aftermarket on others.
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