GM and Ford expected to obtain further savings with global car platforms

Article by Christian A., on November 17, 2010

Over the next five years, Ford Motor Co. and General Motors Co. will be able to catch up with their rivals on one key measure of potential profitability: annual sales of their top global car platforms, according to AT Kearney consultant Daniel Chang. Toyota Motor Corp.'s Camry platform is currently the world's largest automaker platform.

In this top ten list of global platforms, there is not a siDngle Detroit-based company. Chang predicts that by 2015, Ford's Focus platform will be No. 3 in the world, trailed by GM's Cruze platform at No. 4. This is a significant achievement since carmakers can take advantage of the higher sales to offset the costs of creating a new vehicle platform.

They can also use the prospect of expanded global sales across shared platforms to bargain with their component suppliers for decreased costs on parts. During the Reuters Global Autos Summit, Chang said that domestics will be “a different picture when you get to 2015.” He explained that automakers need to compete globally since that’s where you get the “economies of scale."

GM and Ford are moving toward global platforms to reduce production costs and make vehicles that will succeed in markets in North America, Europe and Asia.

Ford has provided an outline for doing this under its One Ford plan. Chang claimed that about 400,000 vehicles on average are built on a single platform by a typical manufacturer in a year. In the development of a vehicle platform, carmakers set the foundation of a vehicle, as they decide on the engine and transmission for it. [via autonews - sub. required]

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries