What Does OEM Stand For?

OEM stands for original equipment manufacturer

Break the phrase into its three pieces and the idea becomes clear:

You say each letter, "O E M," so the oem acronym is really an initialism. New to that label? Our acronym vs abbreviation page sorts out the terms.

What does OEM stand for in cars?

This is where most people meet the term. A car company designs a vehicle, but many of its parts, such as brakes, sensors, filters and lights, are built to its specs. When you replace one of those parts, you usually have two choices.

• OEM part: made by the original supplier or sold by the carmaker, matching what came on the car from the factory.
• Aftermarket part: made by a different company to fit the same car. Quality ranges from excellent to poor.

Insurance claims, leases and warranty repairs often name which kind of part is allowed, so it is worth asking before work starts.

OEM in manufacturing and electronics

In a factory setting, the meaning has two sides, and people use both. Sometimes the OEM is the supplier that builds the component. Other times it is the company that buys components, assembles them and sells the finished product under its own name. A computer maker that buys chips and drives from suppliers and ships a finished laptop is often called an OEM. Context tells you which side the speaker means.

A close cousin is ODM, original design manufacturer, a firm that designs and builds a product that another company then sells with its own label.

OEM software and OEM versions

On a computer listing, "OEM version" usually means software licensed to be installed by the machine's builder. It tends to come tied to that one computer and may not move to a new one. Retail copies, by contrast, are sold straight to the user. If you see OEM next to a program or a driver, read the license terms before you buy, because the rights can be narrower.

Using the term in a sentence

• "The dealer only installs OEM windshields."
• "Our plant supplies seat frames to three OEMs."
• "The aftermarket filter was cheaper, but the OEM one fit better."
• "This charger is OEM, so it shipped in the box with the phone."
• "Check whether your warranty requires OEM parts."

The letters are capitalized and carry no periods. Since the first sound is "oh," use an before it: an OEM part, an OEM supplier.

OEM, aftermarket and genuine: how they compare

Parts sellers use a handful of labels that sound alike. Here is how they usually line up:

• Genuine: sold in the carmaker's own box, often at the dealer.
• OEM: made by the same factory supplier, sometimes sold in that supplier's box instead.
• OE or OE spec: original equipment, or built to the same specification; wording varies by seller.
• Aftermarket: any part from a third party.
• Remanufactured: a used part rebuilt to work like new.

None of these words guarantees quality on its own. They tell you who made the item. For more letters that show up in shops and offices, see the famous acronyms list, and for the plain word, the abbreviation for manufacturer.