IntroductionA successful automobile industry is often seen as a symbol of a country's economic success and the automobile industry plays a key role in well-being economy of southern South Africa. Africa has its own original equipment manufacturers (OEMs) such as BMW, Nissan, Ford, Volkswagen, Daimler-Chrysler/Mercedes, General Motors and Toyota, as well as automotive component manufacturers (ACMs), located in three of South Africa's nine provinces. (Naude, 2009: 10). An important and most effective tool used by the South African automotive industry is buyer-supplier collaboration which fits with the objective of this mission to identify and discuss the factors that influence buyer-supplier collaboration in the industry South African automobile. This mission will first define the automotive industry and the industry's buyers and suppliers as well as the relationship between the two. Factors include pressure from the OEM to reduce prices, lack of advanced communication between buyer and supplier, trust, geographic location, product design, technology, interdependence, supplier rigidity /delivery reliability and the rapid evolution of demand in terms of quantity by buyers. . Additionally, the impact of globalization on the South African automotive industry will be highlighted. There has been an emphasis on globalization in the automobile industry due to the rapid increase in automobile exports. Background of the South African Automotive Industry The automotive industry has existed for decades in South Africa, since the introduction of Ford and GM assembly plants. in the 1920s, the industry has seen considerable growth in recent years, making it one of the largest contributors...... middle of paper ...... executives could Engage in continuous communication and change with senior management to the same ERP systems for easy access to information, this could improve communication between OEMs and ACMs. Negotiating a discount or setting high cancellation fees could avoid canceling orders every time buyers face an economic crisis. Instead, they would choose to reduce the quantity previously demanded. factors that negatively influence buyer-supplier collaboration, such as pressure from OEMs to reduce prices, lead to lower total sales and employment in the long term and put management under pressure to reduce costs in order to regain market share. Order cancellations led to excessive slow-moving ACM inventory..