For manufacturing in North America, all of the Big Three OEMs are focusing on opportunities to increase models and concepts developed from the same vehicle architecture. Most OEMs target fewer platforms to reduce investment costs associated with new-product development that impacts all parts of the process: design, engineering and manufacturing. A flexible manufacturing strategy that consists of programmable welding robots, standardized production practices and one-size-fit-all conveyors for assembly lines are necessary to accommodate reduced platforms.

Flexible architectures enable an OEM to offer an expanded model lineup at lower volumes, and shorten vehicle life cycles, which better position OEM response to consumer demand while increasing the bottom line.

As part of the Jeep (shown here) assembly-plant renovation in Toledo, DaimlerChrysler will outsource three of the major manufacturing processes to suppliers: body, paint and rolling chassis. The suppliers will build and manage their own facilities adjacent to the new Jeep plant, supplying painted bodies and complete rolling chassis to the final assembly line. In the past, Chrysler has outsourced other large body sides to different suppliers, but the most recent changes reflect a shift in manufacturing strategy.

DaimlerChrysler Looks to Outsource Jeep Programs

Since the late 1980s, DaimlerChrysler has been leading the way among the Big Three in reducing vertical integration, as it shed much of its component production and focused on vehicle body production and final assembly. The company's future car architectures are constructed with heavy reliance on affiliates. Mercedes components form the base of the LX platform architecture, and a Mitsubishi-based platform has been used for several future car models. The LX platform was derived from a Mercedes architecture, and so far volume has been strong, but the LX platform may have a PT Cruiser life cycle. The GS/GS+ platform is a Mitsubishi-developed project that will accommodate the compact, standard and entry standard segments.

For car assembly, the DaimlerChrysler strategy is primarily built on single-model-focused platforms with minimal flexibility. That will reduce the carmaker's ability to compete.

For truck assembly, the company has spread future truck models over many truck platforms. Currently, numerous platforms are tied to specific assembly plants, greatly reducing benefits of flexibility. It has not pursued the full-size SUV/utility segment, and many future full-size truck products are the same model offerings that debuted in the late 1990s.

In 2004, DaimlerChrysler took one of the biggest steps yet by an OEM in the auto industry. As part of the Toledo Jeep assembly-plant renovation, DaimlerChrysler will outsource three of the major manufacturing processes to suppliers: body, paint and rolling chassis. The suppliers will build and manage their own facilities adjacent to the new Jeep plant, supplying painted bodies and complete rolling chassis to the final assembly line, and sharing in the expected $900-million investment. In the past, Chrysler has outsourced other large body sides to different suppliers, but the most recent changes reflect a shift in manufacturing strategy. The Jeep platform will build multiple models.

GM Looks to Shift Out of Neutral

Among Big Three assemblers in North America, General Motors was the most vertically integrated OEM until the mid 1990s. With the spin-off of Delphi, GM had reached a turning point in its manufacturing strategy, but changes to systems at the OEM have been a work in progress since the early-'90s.

General Motors' manufacturing strategy is built upon the strength of its global platform architecture and its approach to flexible manufacturing. GM assembly plants blend flexible and lean manufacturing (aspects of the Toyota Production System, TPS) in the launch and assembly of current and future models.

Significant changes in press shops have brought high degrees of automation, fewer people and greater flexibility with GM implementing the most aspects of the TPS among the Big Three. An important part of the new strategy is the increased use of flexible body-shop equipment. GM body shops are currently much more flexible than they were just a decade ago, which should allow for better launches and improved vehicle quality.

To achieve flexible manufacturing, the company developed a system known as C-Flex. C-Flex is a servo-driven, programmable tooling system that adjusts to the contours and sizes of various automotive models and body components moving down a production line. As such, it can eliminate the need for model-specific tooling traditionally used for automotive applications, such as robotic welding.

Ford Needs to Slim Down

Key elements in the long-term potential profitability of Ford Motor Co. will be achieving cost-cutting goals and reducing excess capacity. While the company wants to develop its manufacturing plants into flexible factories, it has to cut costs at the same time.