- Most automobile makers do not manufacture the car parts used in the production of the vehicles they build. Hired manufacturing companies are used for this purpose.
- The OEM company builds the parts and puts them in boxes with the car manufacturer's name on them. Customers may therefore believe they are buying a part directly built by the car manufacturer.
- After a specified period of time, varying by manufacturer, the car parts manufactured by OEMs no longer are placed in boxes with the car manufacturer's name. At this time, the parts are placed in boxes with only the OEM company's name on it. The parts are identical, but cost less because the brand name is no longer on the package.
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