This paper describes first the main characteristics of supply chains in Brazilian automobile industry. Some plants are mentioned to provide some illustration of the new chains implemented. In then discusses some mechanisms used by assemblers to control, partially at least, aspects of price, quality, logistics and technology in the chains. The specific case of Volkswagen - Sao Carlos, an engine assembler plant, and its relationships with some of its suppliers, is used to give details of how some mechanisms contribute to increase assembler's control. The general pattern of those new chains is that the movement of assemblers to higher proportions of parts and services outsourcing has not compromised their control over main bargain variables in supply chains.
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