Benchmarking of Key Global OEMs Vehicle Platform Strategies
Vishwas Shankar, Industry AnalystVishwas Shankar, Industry Analyst
Automotive and Transportation Automotive and Transportation
12 October 201112 October 2011
Today’s Presenter: Vishwas Shankar
Functional Expertise
Over eight years of total work experience and specific expertise in:
• Competitive intelligence and benchmarking
• Market analysis and business opportunity assessment
• New products product price positioning in the electric vehicle space
• New product development and vehicle component sourcing
Industry Expertise
Experience base covering a broad range of sectors including:
• Strong understanding of electric vehicles and their technologies
• Global microcars and micro mobility outlook
• Production platform strategy of global automakers
What I Bring to the Team
2
What I Bring to the Team
• Strategic thinking & strong analytical skills using quantitative techniques and management tools
• Ability to contribute as an individual and team player in structuring and executing complex engagements
Career Highlight
Worked with leading firms and associations in the following capabilities:
• Purchase Manager, Renault Nissan Technology and Business Centre India Private Ltd.
• Purchase Manager, Mahindra Renault Private Ltd.
• Engineer, Mahindra & Mahindra Automotive
• Project Assistant / Teaching Assistant, Birla Institute of Technology and Science, Pilani
• Member – Production Engineering, Sundaram-Clayton Ltd.
• Member – Foundry, Perambur LocoworksEducation
• Master of Engineering – Manufacturing Systems Engineering, Birla Institute of Technology and Science, Pilani
• Master of Science – Engineering Technology, Birla Institute of Technology and Science, Pilani
Vishwas ShankarIndustry Analyst
Automotive &
Transportation
Frost & Sullivan
Europe
Aims and Objectives
Understand and evaluate key modules, systems and components targeted for sharing
Understand key OEM groups’ current and future platform standardization strategy in the
light vehicle category and draw comparisons’
To provide an insight into platform adoption roadmap of key OEM group platforms
A
B
3
Understand and evaluate key modules, systems and components targeted for sharing
across platforms
Provide strategic conclusions and recommendations
To estimate the total investments and expected savings by key OEM groups from platform
standardization strategy
C
D
E
Source: Frost & Sullivan analysis.
Definition
Platform
There is no standard definition of a platform; however, the commonly accepteddefinition is:A collection of fixed design elements that define its architecture.Platforms usually consist of steering system, front suspension, rear suspension,driveline, braking system, powertrain orientation, and mountings, along with thefloor pan that supports all these parts.
Shared PlatformFor the purpose of this research, a shared platform is defined as a platformshared between two or more models within the same segment or differentsegments.
4
Architecture
An architecture defines the overall framework of the vehicle including itsfootprint, driveline and engine orientations, suspension which forms thevehicle’s DNA, and its driving dynamics.Examples of key architectures are FR (Front Engine and Rear Drive), RR (RearEngine and Rear Drive), MR (Mid Engine and Rear Drive), and so on.
Modular Toolkit
An engineering discipline conceptualized by OEMs’ to build a wide variety ofvehicle architectures, potentially using common standardized components, anddifferentiated using vehicle wheelbase, track width, size, and shape.For instance, Volkswagen group plans to make millions of vehicles from justthree key platforms based on modular toolkit strategy.
Source: Frost & Sullivan analysis.
Key OEM Groups Analysed in This StudyTwelve OEM groups including Volkswagen, Renault-Nissan, Toyota, General Motors, Geely
OEM Group Brand
ToyotaToyota, Daihatsu, Hino, Lexus, Scion
Renault-NissanRenault, Samsung, Dacia, Lada;Nissan, Infiniti
OEM Group Brand
Fiat-ChryslerFiat, Iveco, Lancia, Maserati, Alfa-Romeo, Ferrari; Chrysler, Dodge, Jeep
General MotorsBuick, Cadillac, Chevrolet/Daewoo, GMC, Holden, Opel, Pontiac, Saturn
The OEM groups analysed in this study are as follows:
5
VolkswagenVolkswagen, Audi, Bentley, Lamborghini, Porsche, SEAT, Skoda
PSA Peugeot, Citroen
BMW BMW, Mini, Rolls-Royce
Daimler Mercedes-Benz, Smart
Ford Ford, Lincoln, Mercury
Tata Tata, Jaguar, Land Rover
GeelyGeely, Eagle, Emgrand, Maple, Shanghai Englon, Volvo
Hyundai Hyundai, Kia
Source: Frost & Sullivan analysis.
Key Takeaways
The 12 major OEM groups will account for 74 percent of global production by 2020.
The plan is to reduce total platforms by over 30 percent, or from 223 total platforms in 2010 to under 154 by 2020.
Global
level
OEM
level
Volkswagen Group in the High-Volume Vehicle segment and Daimler Group in the Luxury segment are expected to have the highest degree of platform standardisation and widest range of vehicles per platform.
6
Source: Frost & Sullivan analysis.
Region
level
Typically European OEMs have a greater consolidation of models on a single platform.
Hence there is less differentiation among their vehicles unlike Japanese OEMs which have more platforms and offer more differentiation. North American OEMs’ operation strategy is between that of Japanese and European OEMs.
Synergy
Riding on the platform standardisation and modular strategy approach, the top 5–6 OEM groups target 8–10 billion Euros of cost savings per annum, 20–30 percent reduction in terms of development time and cost and at an estimated investment of 85–90 billion Euros in this decade.
Key Global OEMs Platform Reduction Roadmap
Geely Group
Daimler Group
BMW Group
Tata Group
Platform Strategy: Platform Reduction Plan of Key Global OEMs (World), 2010 - 2020
-30 percent
223
154
• The 12 key OEM groups to constitute over 74 percent of global production by 2020. • Over 100 platforms existing today will disappear and pave the way for nearly 40 new platforms to take over
by end of this decade.
Num
ber
of P
latf
orm
s
High
7
2010 Total Platforms 2010 Shared Platforms 2020 Total Platforms 2020 Shared Platforms
Tata Group
PSA Group
Fiat-Chrysler Group
Ford Group
Hyundai Group
General Motors Group
Renault-Nissan Group
Toyota Group
Volkswagen Group
Source: Frost & Sullivan analysis.
-15 percent
110
94
Num
ber
of P
latf
orm
s
Year
Low
Platform Summary of Key Global OEMs
Platform Strategy: Platform Summary (World), 2010 and 2020
To
tal
No
. O
f P
latf
orm
s
XV, E B, B0 Gamma, Delta 3
Global C, Global
C
SR1, C-EVO
PF1, BVH1
Vista, Ace
PL2, PL2
W, MRA B, Basic
PQ35, MQB
HD, HD
• By 2020, 12 key global OEM groups with their total 154 platforms to account for nearly 74 percent of the global production.
High
8
2010 Key Platform, 2020 Key Platform Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.
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lksw
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-Nis
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oto
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Fo
rd G
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Fia
t-C
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PSA
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up
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ta G
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Da
imle
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ely
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up
To
tal
No
. O
f P
latf
orm
s
2010 2020OEM Group
Low
Average Vehicle Production Per Platform Summary
• Average vehicle production per platform is expected to more than double by 2020 from over 0.24 million units in 2010.
• Tata followed by Daimler and Fiat-Chrysler groups to share top honours for increased production per platform in 2020.
Ve
hic
le P
rod
uct
ion
(‘0
00
)
Platform Strategy: Average Vehicle Production Per Platform (World), 2010 - 2020
High
9
Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.
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lksw
age
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up
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nau
lt-N
issa
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rou
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ne
ral M
oto
rs G
rou
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Hyu
nd
ai G
rou
p
Ford
Gro
up
Fia
t-C
hry
sle
r G
rou
p
PSA
Gro
up
Tat
a G
rou
p
BM
W G
rou
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Da
imle
r G
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ely
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up
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hic
le P
rod
uct
ion
(‘0
00
)
2010 2020OEM Group
Low
General Motors Delta 3
Renault-Nissan B0
Volkswagen MQB
Top 10 Production Platforms - 2020
Platform Strategy: Top 10 Production Platforms (World), 2020
Models: Jetta, Golf, Gol, Polo, Fabia, A3, Leon, IbizaNew
• The MQB platform (Volkswagen) followed by the B0 platform (Renault-Nissan) and Delta 3 platform (General Motors) are expected to share the top three spots respectively by 2020.
• By 2020, the top 10 platforms are expected to account for more than 33 million or over 26 percent of the global production volumes compared to over 17 million vehicles or 23 percent in 2010.
Models: Logan, Duster, Cube, Bluebird, Tiida, B-Car1
Models: Cruze, Volt, ATS, Nubira, Astra, Zafira
10
Toyota XP
General Motors Global Gamma 2
Fiat-Chrysler C-EVO
PSA BVH1
Toyota E
Ford Global C
Hyundai HD
General Motors Delta 3
Source: Frost & Sullivan analysis.
Pla
tform
s
Stable
Upward movement
Downward movement
NewNew entrant; moved up
Out Out of top 10 rank
New
New
New
New
New
Units (Millions)
Models: Cruze, Volt, ATS, Nubira, Astra, Zafira
Models: Elantra, i30, iX35, Cee’d, Forte, Sportage
Models: C-Max, Kuga, Focus, Escape, MKC, MKS
Models: Corolla, xB, RAV4, Matrix, Verso, Wish
Models: C3, DS3, M4, 206/207/208, M3, sub-4007
Models: Linea, Wrangler, Journey, D-car, Delta, Bravo
Models: Aveo, Corsa, Sail, Meriva, small SUV, small CUV
Models: xD, Yaris, Etios, Platz, iSt, Ractis
Low High
Platform Strategy: Volkswagen Group - Platform Development Strategy (World), 2010 - 2020
Midsize vehicle
Compact Vehicle
European Products
Volkswagen Group Platform Strategy
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Past: Focus on platform volume synergies by use of standardised parts within the segment; less modular focus
Current: Focus on platform volume synergies by use of standardised parts across segments; growing modular focus
Future: Expanding current strategy covering over 60 percent vehicle parts; high modular focus
Platform Strategy: Volkswagen Group - Platform Development Responsibility (World), 2010 - 2020
Source: Volkswagen, Frost & Sullivan analysis.
Source: VolkswagenSource: Volkswagen
• The MQB platform or the Modular Transverse Matrix is expected to
replace over 10 different platforms and over 30 models by 2020.
• Affected models come from all brands, including
Volkswagen, Skoda, SEAT, and even Audi.
• The MQB platform is characterised by vehicles with the same
engine, axles, and pedal boxes, but differentiated by variety of
wheelbases, tracks, and vehicle widths.
• Key volume models planned on the MQB platform include vehicles from
all its marques, including:
A1, A2, A3,
Q3, R4, TT
Replacement
Platform
A000
AB
Existing
platform
A-
Entry, Alha
mbra, Exeo,
Ibiza, Leon
Fabia, Octa
via, Roomst
Platform Strategy: Volkswagen Group - Roadmap (World), 2010 - 2020
Volkswagen Group - Platform Adoption Roadmap
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all its marques, including:
• Volkswagen Jetta/Vento/Bora
• Volkswagen Polo
• Volkswagen Golf
• Skoda Octavia
• Skoda Fabia
• Skoda A-Entry
• Audi A3
• Audi A1
• Audi Q3
• Seat Ibiza
• Seat Leon
• Seat A-Entry
MQB
B/C 1
PL46/47
PQ25
PQ34
PQ35
PQ46/47
PQMIX
SANTANA
via, Roomst
er, Superb,
Yeti
Beetle
Caddy.
Gol, Golf, J
etta/Vento/
Bora, Lupo,
Passat, Pol
o, Santana,
Saverio, Sci
rocco, Shar
an, Tiguan,
Touran
Source: Frost & Sullivan analysis.Replacement PlatformExisting Platform Vehicle Models
MQB Platform - Gas and Electric Compatibility
MQB MQB
Volkswagen – Electric Vehicle Platform Strategy
• Volkswagen is expected to invest modular EV toolkits to build its electric vehicles with minimal part replacement.
• Nissan is expected to invest in dedicated platforms to build electric vehicles, as in the case of the Nissan Leaf.
Nissan – Electric Vehicle Platform Strategy
13
Source: Frost & Sullivan analysis.
• Modular replacement• Gas engine toolkit replaced by electric toolkit • Minimal discrete parts between electric and engine vehicle
Source: VolkswagenSource: Volkswagen Source: Nissan
Li-ion
rechargeable
batteries
Inverter and
drive motor
Dedicated Nissan
Leaf platform with
aerodynamic smooth
floor
Market Forces and Environment
Platform Strategy: Introduction to Market Forces and Environment (World), 2010 - 2020
Ind
ustr
y C
on
so
lida
tion
Ind
ustr
y C
on
so
lida
tion
14
Source: Frost & Sullivan analysis.
OEMsPlatform
Standardisation Strategy
Pricin
g S
tra
tegy
Pricin
g S
tra
tegy
Cost PressureConsumer Personalisation
Conclusion
Volkswagen Group in the High-Volume Vehicle segment and Daimler
1Twelve key OEM groups constituting over 74 percent of global production
by 2020 are expected to reduce their total platforms by over 30 percent.
Platform Strategy: Three Big Predictions (World), 2010 - 2020
15
2
Volkswagen Group in the High-Volume Vehicle segment and Daimler
Group in the Luxury segment are expected to have the highest degree of
platform standardisation and widest range of vehicles per platform.
3
Nine out of the top 10 platforms are expected to have volumes in excess of
two million units annually by 2020 compared to three out of the top 10 in
2010. Also, contribution of top 10 platforms to grow to 26 percent by 2020.
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