PLASTICS IN AUTOMOTIVE ENGINEERING
Attendance at Mannheim congress steady / Plastics remain material of choice / Supply chain optimisation puts Tier 1 companies under pressure / OEMs want to pass on even more risks
Polymer materials with their versatile application profile and vast potential for innovation continue to dominate technical discussions in automotive engineering. It may be of interest to some whether one engine is that little bit more powerful or efficient than another, but the really stunning technological developments involve plastics. Automotive glazing of lightweight PC, for example, has become commercial reality. And some developers think PU could replace rubber in the car tyres of the future – to name one of the more exotic but particularly interesting innovations being discussed.
This year´s international congress on “Plastics in Automotive Engineering” hosted by the plastics segment of the Association of German Engineers (VDI-K, D-40002 Düsseldorf; www.vdi.de/kunststoffe) from 8-9 March once again was a tribute to the growing popularity of plastics in the automotive sector. As in previous years, the industry made its collective trek to the event in Mannheim /Germany, which attracted 1,400 visitors, the same number as in 2004.
Development and tool costs in product price?
An underlying current in many discussions was yet a new plan by OEMs to pass on risks to their suppliers. The topic was brought to the forefront in the introductory lecture given by Dieter Seipler, chairman of the managing board of Tier 1 supplier Mann + Hummel (D-71631 Ludwigsburg; www.mann-hummel.com). Seipler said OEMs want to increasingly transfer the cost of mould design and development to suppliers, who – in one scenario – would add the extra cost to the overall product price.
While this approach could work for popular car models, for less successful models – in particular those with smaller series production – it would be tantamount to playing with fire and could also accelerate the shift of production to low-cost countries. In any case, the long-term consequences of the additional financial burden on the large automotive suppliers are not clear. The mounting pressure led Intier, a Magna subsidiary, to devote space to the topic in its annual report, and the situation has put a strain on the finances of such major players such as Delphi, Visteon, Lear and Collins & Aikman.
Disintegration of large business units possible
The reorganisation and restructuring of supply chains started by OEMs on their quest for the most direct route to the final product – which already has led to a lot of upheaval – could soon lead to a disintegration of the market´s current structure altogether. Undisputedly, project-oriented production with a high degree of transparency and risk distribution transgress the limits of mixed-calculation business management. The break-up of large, all-embracing economic units such as the traditional Tier 1 suppliers thus would seem to be the logical consequence of the OEMs´ strategy, as the organisational and financial bond that holds these units together no longer reflects the market´s requirements. After all, today´s Tier 1 suppliers themselves are a product of the break-up of the highly integrated car manufacturers, whose production used to integrate a whole range of processes.
Book Service: Conference handbook “Plastics in Automotive Engineering 2005”, 20 lectures, numerous illustrations and tables, soft cover, EUR 78.50 + VAT: PIE-No. B 46894.
This year´s international congress on “Plastics in Automotive Engineering” hosted by the plastics segment of the Association of German Engineers (VDI-K, D-40002 Düsseldorf; www.vdi.de/kunststoffe) from 8-9 March once again was a tribute to the growing popularity of plastics in the automotive sector. As in previous years, the industry made its collective trek to the event in Mannheim /Germany, which attracted 1,400 visitors, the same number as in 2004.
Development and tool costs in product price?
An underlying current in many discussions was yet a new plan by OEMs to pass on risks to their suppliers. The topic was brought to the forefront in the introductory lecture given by Dieter Seipler, chairman of the managing board of Tier 1 supplier Mann + Hummel (D-71631 Ludwigsburg; www.mann-hummel.com). Seipler said OEMs want to increasingly transfer the cost of mould design and development to suppliers, who – in one scenario – would add the extra cost to the overall product price.
While this approach could work for popular car models, for less successful models – in particular those with smaller series production – it would be tantamount to playing with fire and could also accelerate the shift of production to low-cost countries. In any case, the long-term consequences of the additional financial burden on the large automotive suppliers are not clear. The mounting pressure led Intier, a Magna subsidiary, to devote space to the topic in its annual report, and the situation has put a strain on the finances of such major players such as Delphi, Visteon, Lear and Collins & Aikman.
Disintegration of large business units possible
The reorganisation and restructuring of supply chains started by OEMs on their quest for the most direct route to the final product – which already has led to a lot of upheaval – could soon lead to a disintegration of the market´s current structure altogether. Undisputedly, project-oriented production with a high degree of transparency and risk distribution transgress the limits of mixed-calculation business management. The break-up of large, all-embracing economic units such as the traditional Tier 1 suppliers thus would seem to be the logical consequence of the OEMs´ strategy, as the organisational and financial bond that holds these units together no longer reflects the market´s requirements. After all, today´s Tier 1 suppliers themselves are a product of the break-up of the highly integrated car manufacturers, whose production used to integrate a whole range of processes.
Book Service: Conference handbook “Plastics in Automotive Engineering 2005”, 20 lectures, numerous illustrations and tables, soft cover, EUR 78.50 + VAT: PIE-No. B 46894.
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07.04.2005 Plasteurope.com [202372]
Published on 07.04.2005