This list of examples of a turnkey project in international business helps you realize how common turkeys are in outsourcing components in most companies. Turnkey projects exist because no company is self-sufficient. Supplies of some components must be sourced for efficiency and cost optimization purposes.
Most components are outsourced because such do not fall into the core business activities of a given company. This is why sourcing from a company whose core business is the development of the parts/components in question will always be there in the business world.
Turnkey Project in International Business
1. BMW Supplying new range rover V8 engines
When Land Rover launched its fifth generation of the flagship Range Rover in October 2021, it introduced a new lineup of engines. Among these was a BMW-sourced V8 engine. This was meant to replace the thirsty 5 L supercharged V8 engine manufactured by Land Rover.
BMW making the new V8 engines for Range Rovers is among examples of a turnkey project in international business. Land Rover can focus on making their Range Rovers even better and get ready engines to fit in their cars.
The Move by Land Rover to source the BMW engine in a turnkey approach was due to the worldwide downsizing of car engines. This is prompted by regulations to control carbon emissions from fossil fuels burned in internal combustion engine (ICE) cars.
2. Jamco supplying airplane seats
Airplanes are quite complex to manufacture. This is one of those Industries for which manufacturers are allowed no room for error. Even the slightest mistake in airplane production can cost hundreds of people their lives.
Airplane manufacturers do not try to make all components in-house. It’s best when some are sourced from a specialist whose core business is to produce such airplane components. Jamco, for instance, is a company that specializes in making airplane seats.
Jamco specializing in producing aircraft seats is an example of a turnkey project in international business. It specializes in producing ideal aircraft seats with no errors whatsoever.
3. LG supplying electric batteries to General Motors
LG is a company majorly known for home appliances. However, it is also a successful company in supplying car components. The company was contracted in a turnkey Project by General Motors. This contract was meant for LG to supply car batteries for cars manufactured by General Motors.
General Motors wants to Electrify its car as ICE continues to decline. General Motors has not been manufacturing electric batteries before. If it were to manufacture its car batteries in-house, it would be expensive and take a long time unreasonably.
An effective strategy was, therefore, to contract a company that has been manufacturing car batteries before. This is where LG came in as a supplier of car components.
Jaguar is another company that has contracted LG in a turnkey project to supply car batteries. This is in an attempt to electrify its models fully by 2025.
4. Rolls Royce manufacturing jet engines
Rolls-Royce is not just a manufacturer of luxury cars. The company has been in the production of jet engines since 1943. Many airplanes are powered by Rolls-Royce derived jet engines.
Rolls-Royce has been manufacturing jet engines for airplanes like Airbus A330, A340, A350, and A380, as well as the Boeing 777 and 787 Dreamliner. These commercial airplane manufacturers can concentrate on other components of airplane production.
Rolls-Royce manufactures jet engines as specified by these commercial airplane manufacturers in-house and supplies them ready for use.
5. Meridian supplying car manufacturers with sound systems
If you are a fan of the motoring industry, you may have heard the name Meridian. It is a company renowned for making Audio Systems for different car manufacturers. Meridian manufactures sound systems for companies like Jaguar Land Rover, Kia, and the new kid on the block, i.e. Rivian, among others.
Meridian manufactures Audio Systems for these manufacturers under different names. In Rivian Cars, the audio system is called the Rivian Elevation sound system. In Land Rovers, Meridian sourced audio sound system is referred to as Meridian signature sound system.
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