O.E.M.

O.E.M.

O.E.M.

oboloo’s Glossary

O.E.M. Definition

An OEM (original equipment manufacturer) is a company that produces components or equipment that is used in another company’s products. For example, Ford Motor Company produces vehicles and components that are used in many other types of vehicles. When referring to automotive parts, OEM usually refers to parts produced by the same company that produced the vehicle. Aftermarket parts are produced by companies other than the vehicle manufacturer.

OEMs can be original designers and manufacturers of their products, but they can also be resellers of products manufactured by others. In either case, an OEM must have a production agreement or contract with the company whose product it will sell under its own brand name or identity. This type of agreement gives the OEM the right to use the other company’s intellectual property, such as patents, trademarks, and copyrights.