Next-Generation cost and complexity reduction

Automakers have excelled at boosting their line-ups, while reducing their platforms. They have spent decades achieving scale through the use of common parts, designs and assembly processes. Many automakers, however, are reaching the point of diminishing returns. There is more demand than ever for a wider range of models to meet the needs of a more diverse customer base.

To gain even greater scale and provide additional value to consumers, automakers must look outside their own corporations. By partnering with rival automakers or suppliers, they have the potential to reduce their capital requirements and better leverage scarce engineering resources, helping them achieve the next generation of complexity-and cost-reduction benefits.

U.S. Car Market Is Becoming Increasingly Segmented with Different Model Types

The number of new models for sale has increased by over 30 percent in the past 15 years

Source: Statista Research

Next-Generation cost and complexity reduction