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ware and technology-focused companies in order to access technology and customers and secure economies of scale.
Globalization Competition in the industry will remain intense with every
OEM looking to leverage economies of scale. With a shift in global buying power—car sales are expected to rise 70% in Brazil, Russia, India and China over the next 5–7 years as compared to 42% in the US, Europe and Japan—automakers need to design vehicles that meet the needs of consumers in both mature and emerging markets. This will require localization of the manufac- turing base in emerging areas. At the same time, the industry has begun to reduce the number of global platforms and standardize on components in order to remain cost competitive. The industry is becoming glo-cal, where a global platform
is adapted to local preferences. Glo-cal organizations benefit from the use of a global purchasing base. They operate with an integrated multiregional setup where a related network of R&D
Simulation helps speed development and integration of new technologies and new systems.
centers develop products adapted for local markets. Manu- facturing is mainly organized in a decentralized manner based on standard processes so that across the global facilities, high investment areas of the vehicle, such as foundry components and stampings will use the same tools and same materials, but