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As many commentators have noted, outsourcing is one of the fastest-growing and arguably most important areas of business activity. For automobile manufacturing industry, Outsourcing of R&D is becoming a new trend and gains more and more concern. In this paper, an analysis is drawn on the motivations, concept, modalities and process of R&D outsourcing in automotive motor design and manufactory. Based on in-depth exploratory case study on Geely automobile company revealed that R&D outsourcing will not lost core competence of company within the supply chain if it is associated with strong internal R&D capability; a strong competence of the car makers as system integrator; a effective way of conceiving suppliers' management.
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