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News and Reviews

It takes a village (of suppliers) to build a car


By RICHARD RUSSELL
Thursday, December 23, 2004 - Page G6

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Now that Ontario is producing more new vehicles a year than Michigan, it might be time to lay to rest some other myths about the auto industry. For example, that the manufacturer builds the entire vehicle.

The industry has matured to the point where a huge number of outside companies design, develop, produce and deliver the vast majority of the components in any new vehicle, leaving the assembly to the manufacturers, which also in most cases stamps the body panels.

There are several reasons manufacturers outsource much of what makes up their new vehicles. With current crash standards, emission and fuel regulations and quality that could only be imagined a few years ago, manufacturers have stopped trying to do virtually everything themselves and concentrate on design and assembly.

Competition and complexity are the main issues.

Competition has made it necessary to offer the highest possible quality at the lowest price. Currently, there are more than 1,000 makes, models, trim levels and driveline choices available. Many of these variations involve highly complex technologies and manufacturing processes. Rather than try to cover all these under their own roof, manufacturers turn to suppliers -- with exacting standards regarding not only quality, but delivery, service, et cetera.

In many cases, these suppliers operate within the very assembly plant where their product is used, producing subassemblies and putting them in or on the vehicle.

Not too long ago, the automotive parts sector used to be half the size of the manufacturing sector -- but that situation has done a complete about-face. The parts sector is now twice the size of the manufacturing sector. Dozens of world-class parts manufacturers are Canadian, most located here in Ontario. The most prominent among them is Magna International, with annual sales in the $20-billion (U.S.) range.

To get an idea of just how much of a new vehicle comes from outside suppliers, let's take a look at a typical new vehicle.

The majority of the body panels, the engine and in most cases the frame or platform are likely to come from the auto company itself using steel, aluminum or other metals supplied from outside.

But even there, in a growing number of cases, companies like Magna are even supplying complete frame, suspensions and major body panels to some companies.

Using the engine for example, the crankshaft, rods, pistons, valves, valve springs camshafts, plugs, intake and exhaust system as well as the seals, gaskets, heat shields, belts, pulleys and pumps bolted to it will likely come from suppliers. In some cases the block itself may be cast by an outside supplier.

Wiring has become one of the most critical parts of today's high-tech vehicles loaded with sensors and systems from bumper to bumper. The complexity and possibility for quality-control problems here are immense -- but trusted to suppliers. In many cases, the control units or computers are also supplied.

Under the new vehicle, the wheels, tires, brakes, fuel system, steering and suspension components are likely outsourced as are the transmission and the differential housing and other driveline components, such as half shafts, prop shafts and couplings or universal joints.

All the rubber and other protective coverings will also be made by a supplier as will the wipers and door locks and their related mechanisms. The radiator, hoses, gas cap, lights, bumpers, decorative mouldings, roof rails, grill are supplied.

The interior is almost the exclusive domain of suppliers, dozens of them. The instrument panel is usually a complete module from one supplier and the audio and heating, ventilation and air conditioning systems come from two others. The seats, interior panels and pieces including the headliner, carpets are all supplied, as are the glass, window mechanisms, door and window seals, complete sunroof systems.

The seat belts, airbags and related controls and sensors are integrated to work together and are usually supplied by one outside contractor. Of course, all the switches, buttons, knobs, fasteners and window channels are supplied.

Take a look around your new vehicle -- it's entirely possible you won't see a single piece that was actually made by the company whose name is on the fender.








Top 10 New Cars
1.  Honda Accord
2.  Volkswagen Jetta
3.  Acura TL
4.  Mercedes-Benz C-Class
5.  Honda Civic
6.  Audi A4
7.  Toyota Camry
8.  Toyota Corolla
9.  Nissan Altima
10.  Nissan Maxima

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