This is the final post in a series about the competition to scale up and produce EVs more efficiently. You can find the first three posts at www.ekalore.com/alien-invaders
While other vendors appear to be consolidating their many parts down into fewer larger parts, not everyone agrees. BMW’s CEO has claimed that “there is no economic reason to have very large integrated parts in these vehicles” and “partially lower manufacturing cost is overcompensated by casting costs”. VW and Mercedes-Benz have announced the use of large-scale metal casting to deliver economical EVs.
The move to consolidation/simplification of parts is a global phenomenon. Chinese sources have hinted at multiple vehicle manufacturers moving to use large-scale metal casting to simplify assembly at a cost of complex designs for manufacturing and safety testing. Chinese vehicle manufacturers NIO and XPeng and Chinese-controlled Volvo have focused attention on the technique.
The series started by describing how Tesla’s production process challenges incumbent Auto manufacturers, but they’re not the only aliens.
Chinese manufacturers are making rapid progress as Alien Invaders in the EU car markets with EVs. One report cites a Chinese EV export growth rate of 97.% to 340,000 vehicles in the first eight months of 2022. SAIC Motors (GM JV partner in China), BYD (owned at material levels by Berkshire-Hathaway), and battery component manufacturers (CATL, Korean LG, Samsung, SK, Japanese Panasonic). Chinese battery producer CATL supplies Tesla, Peugeot, Hyundai, Honda, BMW, Toyota, Volkswagen, and Volvo.
EkaLore is a consultancy that helps executives deal with tough management problems with tech projects and tactical and long-term strategy. Our Alien Invader framework can help you anticipate surprise challenges from new competition, or you can use it to launch an invasion on a new market. Contact us at sales@ekalore.com to learn more.
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