Major carmakers cutting costs by sharing parts with competitors . . .
08-24-07, 07:54 AM
#1
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Major carmakers cutting costs by sharing parts with competitors . . .
Carmakers cutting costs by sharing parts
Posted on Friday 24 August 2007
As car manufacturers around the world strive to reduce costs, a new plan that would see rival labels sharing more parts is quickly gaining favor. Purchasing chiefs of several major carmakers have announced that such a plan is feasible and that they’re open to it. “We are constantly talking to our competitors on what we can do together,” said GM vice president of global purchasing and supply Bo Andersson at a recent industry conference.
The practice is already occurring, said Andersson, who gave his company’s new HHR wagon as an example. The six-speed gearbox in the HHR is shared with Ford and was originally developed for Toyota, reports Automotive News.
By sharing the costs of developing new parts, carmakers would be able to lower their costs as investment spending is spread across several different manufacturers. Also at the conference were purchasing chiefs of Toyota and Chrysler, who commented that they’d be interested in sharing parts with rivals.
Posted on Friday 24 August 2007
As car manufacturers around the world strive to reduce costs, a new plan that would see rival labels sharing more parts is quickly gaining favor. Purchasing chiefs of several major carmakers have announced that such a plan is feasible and that they’re open to it. “We are constantly talking to our competitors on what we can do together,” said GM vice president of global purchasing and supply Bo Andersson at a recent industry conference.
The practice is already occurring, said Andersson, who gave his company’s new HHR wagon as an example. The six-speed gearbox in the HHR is shared with Ford and was originally developed for Toyota, reports Automotive News.
By sharing the costs of developing new parts, carmakers would be able to lower their costs as investment spending is spread across several different manufacturers. Also at the conference were purchasing chiefs of Toyota and Chrysler, who commented that they’d be interested in sharing parts with rivals.
08-24-07, 01:21 PM
#6
There are a lot of guts on US domestic cars which are being manufactured by the same Tier 1 Japanese Suppliers. Simply because of pricing. Old traditional US Big 3 Suppliers can not compete withthe Quality and Price of the Tier 1 Japanese Suppliers. even Japanese suppliers wants to increase business with the Big 3, more income!
08-24-07, 03:09 PM
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This is nothing new, although I highly doubt Toyota would be willing to share lots of parts with rival automakers. But some of Toyota's suppliers might be willing, and some already do share parts. Companies closely tied to Toyota like Denso and Aisin all make parts for a variety of automakers.
All that's going on here is economies of scale.
All that's going on here is economies of scale.
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