Motorized Vehicle Manufacturing
everything the consumer touches will be localized for that mar- ket. An additional benefit of this approach is that companies with multiple “standardized” facilities across countries can shift production quickly as demand shifts. For example, Ford’s “One Manu- facturing” strategy aims at producing multiple models from plants across the world to save on production costs and quickly adapt to changes in consumer taste. It anticipates producing four–five models at each of its plants by 2015. To achieve this glo-cal approach,
global product development strategies will center around subcomponent modular- ization with suppliers being located near the manufacturer. However, developing the supplier network will be a challenge as many existing suppliers lack the finan- cial strength to expand capacity to new markets. Qualified suppliers will need to show OEMs that they can handle demand change whether it goes up or down. Globalization, however, comes with its
own set of challenges including differ- ing compliance requirements, materials availability and cultural issues that affect vehicle styling and features to signifi- cantly increase development complex- ity. Expanding the number of partners involved, especially when they speak a different language, increases risk of mis- communication to say nothing of expos- ing intellectual property assets. Addition- ally, pricing pressures intensify as global products become more competitive.
Shifting Consumer Demand Besides rising car ownership in
emerging markets and a strong global trend toward low-cost vehicles, a new trend is appearing: “demotorization.” The share of new cars purchased by those aged 18–34 dropped 30% in the last five years, according to the car shopping web site
Edmunds.com. Among 18–24
year-olds 46% would choose Internet access over owning a car, according to a recent Deloitte study.
Consumers want cars that get great mileage, cost less, are safer, get delivered faster and have more options, especially in
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www.mscdirect.com/hertel
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September 2013 |
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