**London**: Automotive manufacturers in the US and Europe must overhaul product development timelines to compete with China’s rapidly advancing carmakers, which are cutting design times significantly. Experts advocate for enhanced collaboration and AI technologies to maintain competitive edge amidst rising challenges such as tariffs and production stagnation.
Carmakers in the United States and Europe are facing an imperative to significantly revamp their new product development timelines in order to remain competitive against the rapidly advancing automotive sector in China. This insight comes from CoLab, a technology company that specializes in collaborative design review and AI solutions tailored for hardware engineering teams. CoLab has already established partnerships with major automotive manufacturers, including Ford and Schaeffler.
Data published by the European Automobile Manufacturers Association (ACEA) indicates that the production output of European carmakers has stagnated since 2010, declining slightly by 1.5% from 18.3 million units to 18 million units in 2023. During the same period, the UK’s automotive output plummeted by as much as 12%. In stark contrast, figures from the International Organization of Motor Vehicle Manufacturers (OICA) reveal that Chinese automotive manufacturers have ramped up their production by an impressive 105%, soaring from 13.9 million units to 28.5 million units.
The competitive edge held by Chinese manufacturers can be attributed to several factors, including laxer regulatory environments, in-house production capabilities, and substantial government support for their supply chains. This combination allows Chinese companies to significantly reduce product design timelines. While leading European and US manufacturers like Volkswagen and Renault typically take between 200 to 216 weeks to develop new products, Chinese counterparts such as NIO have streamlined their processes to achieve development timelines of around 120 weeks, nearly halving the time to bring new designs to market.
As US automakers brace for additional challenges, including newly imposed tariffs on goods imported from Canada, Mexico, and China, an urgent focus on building resilient supply chains has been identified. Stephen Gibson, Head of Product Development at Autoneum, points out the critical resource control that China has for electric vehicle (EV) components. He states, “To stay ahead, or indeed catch up, we need to accelerate innovation, optimise costs, diversify supply chains, and leverage heritage and quality for differentiation. The competition is heating up…It is disruptive and it will help us to ultimately progress faster.”
In line with this urgent need for adaptation, businesses are encouraged to enhance innovation and reduce costs at the design stage by refining their request for quote (RFQ) process and implementing collaborative co-design protocols at the outset. Adam Keating, Co-Founder and CEO of CoLab, advocates for “engineering-led supplier co-design as an easy way to build supply chain resilience.” He explains the traditional RFQ method’s deficiencies, where original equipment manufacturers (OEMs) await supplier feedback after finalising designs. By engaging suppliers earlier in the design process, using modern digital tools such as CoLab Portals, companies can streamline the collaborative tech review and achieve significant efficiencies.
Keating elaborates, “The companies who adapt to this new way of supply chain collaboration see 30-50% faster lead times, 2x faster design cycles and up to 50% reduction in BOM costs.” This collaborative approach not only benefits OEMs but also offers suppliers competitive advantages in future RFQs, fostering collaborative relationships that can significantly enhance efficiency.
Despite anticipating a slowdown in sales and production in 2024 due to subsidy cuts and stricter emissions regulations, Europe is gearing up to introduce 160 new EV models in 2025. However, to effectively challenge their Chinese rivals, these new models must be both competitively priced and capable of exceeding consumer expectations. Keating notes that the EV market has evolved rapidly over the past five years, suggesting that companies launching products now may already be lagging. He emphasizes that “Success will hinge on the ability to be nimble, on simple platforms and on the strength of the ecosystems carmakers build.”
Keating also highlights the risk of obsolescence for EVs as rapid innovation leads to product delays and missed market opportunities, which could result in significant financial losses for manufacturers. He argues that traditional carmakers must expedite product design processes to avert potential collapse.
Advancements in AI technology present crucial opportunities for automotive manufacturers to enhance their operational speed and agility. By harnessing new collaborative software, including design engagement systems (DES) alongside existing computer-aided design (CAD) platforms, companies can streamline and automate their design review processes. Such initiatives foster an environment where key partners can collaborate effectively while accessing only relevant product data.
Ford Pro Special Vehicles has already begun utilising CoLab technology, with Senior Project Engineer Andrew Walden noting a substantial increase in the speed of design iterations as a result. “We’ve rolled out CoLab to our entire 200-strong convertor network in Europe to accelerate design iterations and drive more innovative solutions,” he stated. This transformation not only aims to expedite time-to-market but also enhances Ford’s competitive standing within the automotive landscape.
Source: Noah Wire Services
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