Sep 29

Nowadays vehicles are composed of around 20 000 to 30 000 different parts , all of which even the largest manufacturers cannot produce by themselves. Therefore automakers are forced to outsource production or purchase already finished product parts from second and third level suppliers.

Also considering the individual complexity of the subparts it is a crucial thing to buy in the right parts without loosing the focus on other non competitive technologies but at the same time keep the fundamental differential criteria and intellectual property for the creation and design of unique, competitive and differencing car products.

Most vehicles makers will not know how to make a micro controller or perhaps do not have in deep details about how to maximize the yield exploration on die wavers. This is simply not their core business, but still for example electronics and MCU prices have to be considered deeply. Picking the right technology and picking the best components for the OEMs task is crucial.

With the usage of in average 80 MCUs inside one vehicle and vehicle productions over half a million pieces per brand is nothing extraordinary anymore.  Considering for example a pricing difference of one dollar for one micro controller per electronic control unit (ECU) used inside a vehicle the consequent cost increase can be significant.

Therefore for the production, Automakers  either outsource production or purchase finished products, such as tires
and batteries, including products manufactured abroad.  The volume of imported components is increasing yearly.

Automobile manufacturing is therefore an integrated industry. It relies on many supporting industries to produce the  great diversity of materials and components it uses.  Trends in the automobile industry, which makes huge
investments in equipment and R&D activities, are considered a barometer of the economy. Most trends and innovations nowadays are therefore driven my the suppliers. Automakers itself try to focus on their defined key differentiating criteria like cost, Economy (Fuel efficiency), warranty,  Safety (very important for Asian and female customers), Environment, Comfort/Infotainment, Production Price, Customization etc. just to mention some.

A very interesting overview is yearly published in the Japan Automobile Manufacturers Association reports showing the principal materials and components used in automobiles in 2008:

Cast iron Engine parts, e.g. cylinder blocks
Common steel Chassis, frames, wheel parts
Special steel Gears, axle shafts, crankshafts, fuel injection equipment
Copper Electricals, radiators, cables
Lead, tin, zinc Engine metals, solder, body varnish, batteries
Aluminum Engine parts (e.g. pistons, cylinder heads), wheels, chassis
Noble metals Emissions purification parts
Other nonferrous metals Magnets, plating
Noble metals Emissions purification parts
Synthetic resin Steering wheels, bumpers, radiator grilles, body components
Glass Window glass, mirrors, headlamps
Rubber Tires, sealing parts, vibration control parts
Ceramics Plugs, electronic parts, sensors,
emissions purification parts
Textiles Seats, linings, seatbelts
Leather Seats, packing
Paper Filters
Wood Load-carrying platforms, interior equipment
Paints Ornamental and rustproof paints
Chemicals Antifreeze, engine oil, transmission oil,
brake oil
Animal and vegetable oils For casting
Fats and oils For lubrication, heat treatment, etc.
Springs, dampers nbsp;
Turbochargers  
Bearings  
Machined parts, e.g. pumps  
Tires and tubes  
Batteries  
Window glass  
Onboard tools, e.g. jacks  
Supplies, e.g. extinguishers, tire chains  
Electronic parts Sensors, ECUs, actuators
Lights, cables, optical fibers  
Air conditioners, air cleaners  
Starters, alternators, meters  
Radios, cassette decks, CD/DVD players, phones, navigation systems  
Safety equipment, e.g. anti-lock brakes, airbags,
traction control
 
Coke For casting
Petroleum, electricity,natural gas Fuel, heat treatment, paint drying, power generation

It is easy to see, that nowadays cars became more than a moving platform, but the incorporation of hundreds of industry sectors into a unique, user customizable vehicle product.

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