**London**: Technology company CoLab is revolutionising collaborative design processes in the automotive field, encouraging manufacturers to involve suppliers earlier in product development. This shift could help European firms compete with rapidly advancing Chinese car makers by drastically shortening design cycles and reducing costs.
CoLab, a technology company dedicated to enhancing collaborative design review and artificial intelligence solutions for hardware engineering teams, has been making significant inroads in the automotive sector, collaborating with major manufacturers such as Ford and Schaeffler. According to data from the European Automobile Manufacturers Association (ACEA), the output of European car manufacturers has remained largely stagnant since 2010, reflecting a slight decrease of 1.5% from 18.3 million to 18 million vehicles in 2023. In the UK, this drop is reported to be as much as 12%.
In contrast, the International Organization of Motor Vehicle Manufacturers (OICA) has highlighted that Chinese car manufacturers have increased their production by a staggering 105%, rising from 13.9 million to 28.5 million vehicles during the same period. The advantage of the Chinese automotive industry is attributed to fewer regulations, substantial in-house capabilities, and robust government support for supply chains. These factors enable Chinese companies to accelerate their product design timelines significantly.
While European and US companies like Volkswagen and Renault typically require between 200 and 216 weeks for product development, companies in China such as NIO have cut this duration to around 120 weeks, allowing them to launch new designs to market in nearly half the time. This accelerated pace presents a challenge for traditional car manufacturers, particularly as US companies prepare for further complications amid the introduction of tariffs on goods from Canada, Mexico, and China.
Stephen Gibson, Head of Product Development for Autoneum, stated, “China controls critical resources for EV components. To stay ahead, or indeed catch up, we need to accelerate innovation, optimize 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.”
As the industry grapples with evolving challenges, businesses are encouraged to focus on optimising innovation and lowering costs from the design stage. Adam Keating, Co-Founder and CEO of CoLab, highlighted the potential benefits of modernising the request for quote (RFQ) process. He posited that traditional methods require OEMs to send out RFQs and wait for responses before sharing product data with preferred partners only after final designs are completed. Instead, he urged that suppliers should be involved in the design process from the early stages, utilising digital tools such as CoLab Portals. This would enable engineers and suppliers to collaborate on technical reviews during RFQs, effectively speeding up design cycles and minimising administrative burdens.
“The OEM wins because they benefit from a smoother, faster design process. Suppliers win because they have a competitive advantage in future RFQs. And both win by collaborating rather than reacting,” Keating articulated. He further elaborated that companies adjusting to this collaborative approach can experience lead times that are 30 to 50% shorter, design cycles that are twice as fast, and a potential reduction of up to 50% in bill of material (BOM) costs.
With a projected slow-down in sales and production in 2024 stemming from reduced subsidies and stricter emissions regulations, Europe is nevertheless poised to introduce 160 new EV models by 2025. To compete effectively with their Chinese counterparts, these vehicles must not only be competitively priced but also exceed consumer expectations. Keating noted, “The EV race has been going on for nearly five years, which means companies going to market with models now are already very late.”
He emphasised that the success of these new models will depend on their agility, simplicity, and the strength of the ecosystems built around them. Furthermore, Keating pointed out the rapid pace of innovation in the industry implies that some electric vehicles are becoming obsolete by the time they reach the market. “Product delays and missed milestones can cost millions of dollars, which carmakers cannot afford in a market that is already seeing widespread discounting. Traditional carmakers will need to double product design speeds and eliminate typical four to five-year product cycles, or risk collapse,” he warned.
The advancements in AI are identified as a key factor supporting carmakers’ efforts to achieve the necessary changes in speed and agility. By incorporating new collaborative software such as design engagement systems (DES) alongside existing computer-aided design (CAD) platforms, companies can streamline, automate, and enhance design reviews, allowing for concurrent work with key partners in a controlled environment.
Andrew Walden, Senior Project Engineer at Ford Pro Special Vehicles, remarked on the positive impact of CoLab, stating, “It’s a massive increase in speed. We’ve rolled out CoLab to our entire 200-strong convertor network in Europe to accelerate design iterations and drive more innovative solutions.” This strategy not only ensures that converters are better prepared to see vehicles sooner but also accelerates market readiness, enhancing Ford’s competitive stance.
Source: Noah Wire Services
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