Globalization of cars is good news for collision repairers

Dec. 4, 2014
Globalization of cars, which is what GM, Volkswagen, Ford and Toyota are currently working toward, means related parts will have reasonable prices, leading to more repairable vehicles.

General Motors made the stunning announcement in early October that they would shift over the next 10 years from 26 global vehicle production platforms to just four by the year 2025. That massive undertaking could eventually save the U.S. automaker many billions of dollars in production costs. Skeptics may see this as the badge engineering GM was famous for — a tactic that culminated in the 1980s with the Cadillac Cimarron, a re-badged Chevrolet Cavalier that few believed was a true Cadillac.  GM tried it again with the Cadillac Catera, a rebadged Opel product that also failed to impress targeted buyers. But this current shift goes beyond simple cosmetic and badge changes. It will be a complete consolidation of GM’s unibody and body on frame offerings around the world.

The goal is to simplify the engineering and manufacturing of GM's future cars and trucks, and should allow the company to deliver new vehicles more quickly to customers around the world. If they pull it off, GM can save on components, tooling and other manufacturing-related expenses.

GM is not alone in the desire to reduce the number of platforms underpinning their global offerings. Volkswagen, Ford and Toyota have similar goals, and auto industry experts believe that as few as 10 global platforms will be the basis for 30 million vehicles by 2018. Volkswagen’s MQB platform, for example, will be the underpinnings for a whopping 41 vehicle models around the globe. MQB is an acronym for Modularer Querbaukasten, which roughly translates to modular transverse matrix. It will be the basic construction platform for small and midsize sedans and crossovers for Volkswagens and Audis. After that, the MSB platform Modularer Standard Baukasten (modular standard platform) will debut in the next-generation Porsche Panamera, the next-gen Bentley Continental and a planned new VW Phaeton.  

Where is the benefit to collision repairers?
When producing world platforms and then in turn maximizing the models derived from those platforms, automakers save money by producing many more of the identical parts to serve multiple models. This approach helps collision shops in two ways. First, OEM-specific repair techniques for high-tech alloys and panels that require unique assembly methods and materials will be consistent across the platform. So it stands to reason that adhesive bonding procedures for a new VW Jetta will be the same as for an Audi. This should increase the familiarity of the OEM repair procedures and reduce the time a technician needs to learn the proper procedure for each model’s specific component replacement. The biggest advantage to these shared platforms is the shared structural and mechanical components. When inner structures are shared, the reconstruction processes will be the same, so specifications for aluminum welders for use in VW products should be the same as for Porsches and Audis and even Bentleys, which will share the same MSB platform.  

The second advantage is that certain parts such as sub-frames, rails and suspension components can be produced in larger numbers. That will allow amortization over a longer lifespan, lowering the per part production costs.  Clips, fasteners, airbags and ABS brake components will also benefit from this global platform standardization. Hopefully, this will mean these parts will have reasonable prices. Since parts are such a large part of the cost of an estimate (they account for 45 percent of a repairable estimate according to our most recent study) this will lead to more repairable vehicles.

Clearly, globalization of cars will benefit the collision repairer, eventually. Right now, we have 239 million vehicles on the road, and sell about 16 million new vehicles in a year. So it will take a while before we start to see a large number of these globalized vehicles on the road and in the body shop. 

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