TECH & INNOVATION  /  SME

By FedEx | April 20, 2026

In modern automotive manufacturing, precision and reliability are central to business success. A leading German luxury automaker illustrates how efficient cross-border logistics supports its localization strategy in China and safeguards its brand reputation.

• A German luxury automaker advancing localized production in China encountered challenges in maintaining just-in-time precision.
• The company leveraged FedEx’s tailored solutions to move sensitive and time-critical components across borders, keeping production schedules on track.
• By working closely with FedEx’s experts, the automaker was able to proactively manage compliance risks and minimize customs clearance delays when shipping dangerous goods such as lithium batteries.

China’s automotive industry is racing ahead of the world. In 2025, the country’s automotive production and sales both exceeded 34 million units, ranking first globally for the 17th consecutive year. Today, it is both the world’s largest automotive manufacturer and among the top vehicle exporters.

A report released by the European Automobile Manufacturers' Association (ACEA) in April shows that in 2025, the number of cars exported from China to the EU increased by 30.7%, surpassing one million units for the first time.

This leading position has made China central to the global strategies of many automotive brands. As industry competition intensifies, localized production is no longer merely a strategic option but a critical factor in cost control and market acceptance. By building local production facilities in major markets like China, global carmakers can manage logistics costs and respond faster to customer demand.

But localization strategies can also introduce new supply chain challenges in an industry that depends on just-in-time manufacturing. Efficient cross-border logistics are critical to production schedules and on-time delivery, determining whether automakers thrive against fierce competition.

One renowned German luxury automaker has been a pioneer in advancing localization in China. Known for its stringent quality standards, the automaker has achieved precise synchronization between high-frequency imports from Europe and local production cycles in Asia by leveraging FedEx’s time-critical logistics solutions. The company’s ongoing collaboration with FedEx enables it to move sensitive and high-risk components across borders, keeping operations running smoothly and protecting its brand reputation.

Tackling the challenges of just-in-time delivery

In modern automotive manufacturing, precision and reliability form the two core pillars supporting brand loyalty and business success. The just-in-time (JIT) production model, widely adopted by automotive manufacturers, embodies the essence of lean manufacturing.

This strategy synchronizes component delivery with production timelines, ensuring that parts are delivered only when needed. Its success hinges on supply chain reliability and seamless coordination.

The challenges of a just-in-time supply chain are especially acute for brands sourcing high-precision components from outside China. Nearly half of imported automotive parts originate from the EU, with transmissions and body components comprising the largest share.

This reflects the rigorous quality standards set by global brands. To maintain consistent product performance, localized manufacturing rates for certain parts remain relatively low. At the same time, this commitment to quality introduces cross-border logistics hurdles.

The German automaker has established a distinctive supply chain model that combines European precision manufacturing with Chinese domestic assembly and nationwide network distribution. Such a complex model demands exceptional accuracy and stability from its logistics network.

Currently, the company imports components at a high frequency from Germany and the UK to its China-based R&D centers and its Shenyang factory. Once assembled, the vehicles are distributed to dealers nationwide. To manage tight schedules and short lead times, the automaker works closely with FedEx to streamline just-in-time delivery and minimize disruption.

Powering automotive logistics with tailored solutions

To support just-in-time supply chains, logistics providers must evolve from traditional transporters into strategic partners that deeply understand automakers' lean production rhythms. Leveraging its extensive air-ground network across Europe and Asia, FedEx has developed a specialized range of automotive logistics solutions.

FedEx’s Collaborative Shipping Tool also enables businesses to build digital shipping relationships with suppliers, distributors, and other partners while automating waybill management. It streamlines the import process and is especially well-suited for automotive parts shipments that require coordination among multiple parties.

For automotive manufacturers pursuing JIT production, this model not only improves supply chain coordination, but also enhances data security and operational transparency. Within the first week of using the tool, the German automaker completed more than 2,500 shipments.

FedEx’s robust Asia-Europe connectivity enables 48-hour express shipping between major markets, helping automakers to deliver urgent components and prevent production bottlenecks. Businesses can also leverage tailor-made solutions for specific needs with FedEx Customized Freight, which keeps shipments on track through contingency planning, priority boarding, and real-time monitoring.

Beyond speed, cost-efficiency is a key consideration in cross-border logistics. FedEx’s flexible solutions allow automakers to scale small-batch shipments up or down as needed and manage cost structures efficiently. We also use advanced tools to optimize shipping routes and loads, helping businesses to reduce shipping expenses where possible.

Ensuring compliance for dangerous goods

For manufacturers like the German automaker, compliance is another major pain point in cross-border logistics. Vehicle components often include dangerous goods such as lithium and nickel-metal hydride batteries, which come with complex packaging and documentation requirements.

Failure to comply with dangerous goods regulations puts the automaker at risk of customs clearance delays. In a lean production system, such disruptions can quickly snowball – holding up assembly lines, halting R&D testing, and slowing new product development. Compliance issues can also impact the company’s customs credit rating in China, leading to increased inspections and longer clearance times.

To ensure shipment compliance, FedEx’s experts collaborate closely with the automaker’s cross-regional teams. Drawing on over four decades of experience in transporting dangerous goods across borders, FedEx’s compliance and safety specialists have helped the company to implement proactive risk management processes at the point of origin. Rather than passively awaiting inspections, the automaker can now actively minimize delays and maintain stability across its supply chain.

Preparing automotive logistics for tomorrow’s demands

In an increasingly complex global landscape, tailored logistics solutions can significantly enhance supply chain resilience and support sustainable business growth. FedEx’s ongoing collaboration with the German automaker is a testament to this. 

As the auto industry evolves, automotive logistics must innovate in tandem. The rising adoption of gigacasting (also known as megacasting) promises to radically simplify manufacturing by replacing hundreds of smaller parts with massive, single-piece structural components. This trend positions freight shipping as a critical enabler for automotive supply chains in the future.

FedEx has developed freight shipping solutions that meet the industry's stringent demands for speed, safety, and handling oversized and heavy cargo. For example, FedEx International Priority Freight offers reliable worldwide shipping for unitized single pieces, typically within one to three business days. 

In addition, we have taken steps to enhance connectivity between Asia and Europe. In October 2025, we added five weekly flights between China and the FedEx European Hub at Paris Charles de Gaulle Airport, further strengthening service reliability along the trade corridor.

Through these cross-border logistics solutions and service enhancements, we’re ready to help automakers build resilient supply chains and drive long-term growth in the global market.

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Learn more about our automotive logistics solutions here.