Global architecture results in consistent assembly methods, lower parts prices

Jan. 1, 2020
When producing global platforms, automakers save money by producing many more of the identical parts to serve multiple models. This helps collision shops in two ways.
Forness ABRN auto body repair collision repair estimating

The advanced complexity of vehicles on the market and in the pipeline for U.S. buyers has been at the forefront of the collision repair industry during the past year. Now there's another change that could impact shops, but in a positive way. The move toward global vehicle platforms may become a reality finally.

For decades, domestic automakers have been promising to deliver on the idea of global architecture. During the 1970s, the Big Three automakers insisted their European models wouldn't sell in the U.S. because they were too small and rode too firmly for American tastes. But attitudes started to change during the early 1980s as domestic car makers saw more Americans buying foreign cars after the fuel crisis in 1979.

Remember the original U.S. Ford Escort? It was touted as Ford's world car, but, in actuality, the shared platform barely was evident when the U.S. version was parked next to its European cousin. U.S. specification headlamps and radiator support, lack of side markers in the front fenders and different front and rear contours to accommodate the monstrous 5-mph bumpers left the two with little in common.

During the same time, GM and Chrysler didn't fare much better. GM North America didn't share platforms with its international divisions, Opel/Vauxhall in Europe and Holden in Australia. Interestingly, Opel/Vauxhall units shared many platforms with Australia's Holden and produced some of Australia's most loved cars.

But Ford and GM have had to reinvent themselves recently, reduce costs and increase value and packaging in the U.S. market. Enter the global platform. Ford is leveraging its best products from other markets.

First out of the gate is the Ford Transit Connect, which was introduced last year. It has been a commercial hit in Europe and created a market segment in the U.S. for commercial businesses that need a small cargo carrier other than the minivan.

Next up, Ford reintroduced the Fiesta. (The original Fiesta was a stopgap between the Pinto, which was for the North American market only, and the watered-down first North American Escort.) The original Fiesta was aimed at buyers looking at the VW Rabbit and Fiat Strada, but the exchange rate for the German-manufactured Ford made the Fiesta expensive for an economy car, and sales fizzled. Although promising as an initial foray into the world platform idea, poor sales prevented it from becoming a true world platform. In contrast, the new Fiesta is similar to its bestselling European counterpart, and therein lies the advantage.

When producing world platforms, and, 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 adhesive bonding procedures for the new 2012 Ford Focus will be the same as they are for the upcoming Ford C–Max micro minivan. The C-Max, already a heavy hitter in Europe, is a minivan based on the Ford Focus platform that seats seven. Although Ford's literature calls the seating five plus two, it acknowledges the rear two seats are best for small children.

The biggest benefits of shared platforms are the shared structural and mechanical components. When inner structures are shared, the reconstruction processes will be the same, so once a rivet bonding procedure is set for the Focus for example, the same procedure would apply to the C-Max.

GM may have been the first to do this with Saturn, which had a product mix that could've been a contender after converting its product offerings to GM's German Opel architecture with the last Aura and Astra models. Unfortunately, the brand was shut down before it had a chance to realize any advantages from its European relations.

Fiat-Chrysler also is going global by starting to leverage its Fiat brands. The company has come a long way since it last imported Fiats to the U.S. in 1983. Their executive class cars, what we'd classify as mid-size cars, will offer U.S. buyers cars that are light years ahead of the current Dodge Avenger. Fiat is the second largest automaker in Europe, so it'll be able to exercise the same leverage in world platforms that Ford and GM can. This could be a triple win situation: Consumers get great products to drive, OEM's can save costs, and collision repairers should see the benefits of true world architecture.

The second advantage is the parts can be produced in larger numbers and will allow amortization throughout a longer lifespan, lowering the per-part production. Hopefully, this will mean the parts will have reasonable prices. Because parts are such a large part of an estimate's cost – in Mitchell's most recent study, parts account for 44 percent of a repairable estimate – this may lead to more repairable vehicles.

Larger quantities of these parts also may stave off the aftermarket parts producers from producing knock-offs because the profit margins will be better elsewhere. Because there are many facets to the aftermarket parts debate, it's important to be aware of both sides to understand the situation the market pressures could produce.

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