Frost: Cost, Efficiency Drive Euro Cockpit Modules, Systems Market
December 29, 2006 // Published as a news service by IHS
| |
| Tools for Engineers |
| IHS sells products and services designed to meet the needs of today's engineers. To learn more, and for a free quote, please complete the form below. |
|
Faster time to market, rapid vehicle assembly and improved resource management are significant factors driving the outsourcing of cockpit modules.
According to Frost & Sullivan, cost remains the main driver for outsourcing cockpit assembly, while constraints on production or resource capacity will provide potential reasons for outsourcing cockpit engineering and design.
"Production flexibility, program management and cost savings are the most important determinants for outsourcing cockpit modules," said Frost & Sullivan research analyst Vigneshwaran Chandran.
"Faster development and assembly, combined with cost savings through outsourcing assembly and engineering responsibilities present an advantage for vehicle manufacturers (VMs), although the levels of responsibility outsourced will undoubtedly influence the extent of benefits that can be realized."
Analysts said the outsourcing of cockpit modules by automakers such as BMW Group, DaimlerChrysler and Volkswagen group, Ford Motors and Renault-Nissan supported market expansion up until now.
However, growth levels are expected to slow down, unless other European VMs join the bandwagon and boost the uptake of pre-assembled cockpits.
Varying levels of success in cockpit implementation have VMs disagreeing on the potential cost savings gained by outsourced modules.
Analysts said this also prompted some VMs to in-source cockpit assembly and adopt outsourcing for projects where obvious savings or a convincing business case is apparent.
"Most VMs evaluate modularization of cockpits only from a cost-saving perspective," said Frost & Sullivan program manager Anil Valsan. "However, some VMs are not completely convinced about the effectiveness of this approach, since it is very complex to measure the exact savings and identify hidden costs of the process."
Cockpit design is an area that has undergone considerable changes and will continue to do so over time, especially with the advent of advanced chassis and heating, ventilation and air conditioning (HVAC) technologies, electronics and modern material developments. Analysts said significant changes will also occur in the responsibility levels outsourced to suppliers as they gain more expertise in design, development and technical know-how.
"In future, cockpit suppliers will possess extensive electronic skills to manage the complexity of design integration, encouraging VMs to outsource more design and development responsibilities," said Chandran. "The early involvement of suppliers in product development and collaborative efforts in advancing cost-saving and innovative solutions will be the future for suppliers and VMs in cockpit module development."
Source: Frost & Sullivan.