Will platform consolidation deliver anticipated savings or are the hurdles too high?

Will future modular vehicle architectures deliver the expected vehicle platform volumes and savings to auto makers and suppliers?
Or will issues such as wide-ranging differences in regional government regulations; limited supply chain and engineering complexity limit the payoff?

on Oct 16, 2013

Consolidation in vehicle platforms will provide the economies of scale necessary for the OEMs to negotiate better supplier pricing, improve margins, and introduce vehicles usually slated for mature markets into emerging markets more effectively. The downside risk is managing quality and the supply chain in general - with more vehicles sharing common parts, a defect, warranty issue, or supply bottleneck will result in a larger impact than before.

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