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James Dainty

European Automotive Facts & Myths: Post #4 of 6

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The Automotive Industry in Europe remains in a state of fragile recovery as the region continues to recover from the recent and widespread recession. And yet, Europe is still a bright crucible for the production of new vehicles for export around the world. In this six part blog series, we explore a number of Facts & Myths that pervade the industry, and discuss how new software technologies like enterprise Product Cost Management are helping Automotive manufacturers achieve growing success in their challenging journey to profitability.

#4 MYTH! The current automotive product development and costing process is efficient

Ageing processes, a lack of investment in modern technology, and a loose hold over product cost management are combining to prevent European manufacturers from making faster leaps in innovation and production.

Current automotive product development and costing process are not efficient and must be improved.

Automotive manufacturers continue to look for new ways to reduce costs, model new manufacturing scenarios, and cope with increased outsourcing of parts, tooling and components. However existing processes, cross-function communications and understanding of cost changes in components and materials, are not efficient.

With large enterprise resource planning, supply chain and manufacturing execution systems that have grown organically, many automotive OEMs and large Tier 1 suppliers have cost data scattered across the entire organisation. This makes it difficult – in some cases impossible – to get a single consistent view of product cost. As a result, different departments and product groups are often producing their own, often conflicting, cost goals and agendas. Management does not have a single view of product costs across the enterprise, and product development teams are flying blind.

Want to learn more?

Download the whitepaper, How Automotive Manufacturers Can Navigate the Cost of Increased Government Regulation, to learn more about these issues, and about new strategies that can help automotive manufacturers navigate the cost impact of these requirements across the entire product development process. This whitepaper also presents ways to identify new cost savings on individual parts and products as well as entire product assemblies and platforms to offset the increased costs of new regulations.

 

Other posts in the European Automotive Facts and Myths series

FACT!  Manufacturers must produce more efficient cars

MYTH!  Brussels has dealt a fatal blow to car manufacturing

FACT!  Every gramme of carbon dioxide manufacturers eliminate costs 100 million Euros

FACT!  The automotive industry is slow to adopt new technologies

MYTH!  New technologies are powerless to help manufacturers improve costing systems

 

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