ABSTRACT The automotive sector is widely recognised as one of the industries which greatest importance can assume in the development of a country's economy. This importance was irreversibly recognised by the Portuguese Government in 1963 and since then, the sector has experienced a growth that currently gives it the number two status in terms of national exports. Being relatively recent in Portugal this industry and the exponential growth it has experienced in the last decades have yet to be fully understood. This thesis aims to contribute positively to increasing the knowledge base of this industry in Portugal by identifying and characterising the main competitive advantages of the Portuguese automotive components industry, more specifically of the stamping subsector. Notwithstanding the significant development which has characterised the sector, and the stamping companies in particular, core competencies are still generically restricted to manufacturing. As such, this thesis will concentrate on analysing companies from the point of view of their manufacturing competencies and capabilities through the use of technical cost modeling which is specially well adapted to analysing manufacturing processes. The analysis presented in this thesis points towards two main aspects. The first refers to the positive exploitation by the components suppliers of the Portuguese exogenous factors, the second, the possibility of introducing specific improvements in manufacturing performance which will yield significant cost savings. The identification of these areas of improvement was based on the analysis of the exogenous factor conditions, company and product characteristics, as well as product attributes valued by the clients. Moreover, these results confirm the usefulness of technical cost modeling as an analysis tool to characterise and evaluate manufacturing processes, identify possible areas of improvement and help define companies' operations strategies and competitive positions. These results are possible when manufacturing data is complemented with market, company-wide and environment information. Although only a reduced number of case studies were undertaken in Portuguese stamping companies, the results obtained in this thesis do not point towards substantial difficulties in applying the same methodology to other companies in this subsector, sector or even to enterprises from other sectors of activities as long as the corresponding technologies are conveniently modelled and the researchers have an adequate understanding of the industry being studied. KEYWORDS: Competitiveness, Manufacturing Performance, Technical Cost Modeling, Automotive Components, Stamping.