FUD, or Fear, Uncertainty, and Doubt, has been used as a marketing strategy for years. It's an old...
The automotive industry has always been one of the most competitive industries out there. For years, automotive manufacturers have been producing cars in the same traditional way - using parts, tiers, and line systems like spot welders and screw machines. However, no one has revolutionized the industry quite like Tesla, the pioneer of EV manufacturing, who has managed to disrupt the traditional model in so many ways that it's hard to count.
Legacy Automotive OEM made cars in three basic steps, Body in White (BIW), Tiers, and finally, General Assembly (GA). However, Tesla reduced the parts and complexity of each of these steps with each line launch. As other automakers try to catch up with Tesla, they must understand where to focus their efforts.
1. Body in White (BIW) line systems: Traditional automakers use SWS, SPR, spot welding, screw machines, and adhesives to assemble the exterior parts or body parts of the car to its frame. Tesla, however, has reduced this complexity, using fewer parts and relying on more automated assembly with increased precision. Reducing parts in the BIW process makes the car simpler and lighter. Before EV, BIW lines consisted of anywhere from 100-300 robotic systems, from the movement of the underbody to installing fasteners to attach the metal skin to the car. Tesla reduced that by 1/5 in Shanghai, 1/3 in Berlin, and half in Austin, with the full underbody casting removing 100 parts and assemblies.
2. Tiers: Tesla is 70% direct, whereas legacy auto is 70% tier. When automotive manufacturers use tiers, they buy up to 70% of their parts from suppliers, charging a hefty markup price. Tesla reduced the use of tiers by bringing more manufacturing in-house, resulting in cost savings and better time management, ensuring they aren't at the mercy of tier suppliers. Cost is vital in the race against Tesla, but so is being ahead of schedule with stock markets watching.
3. General Assembly (GA): GA assembly needs less complexity. As an example to improve, traditional automakers use bolt-on brackets to attach fascia or bolster to the frame. Tesla and many EV startups use engineered brackets or ones that easily snap in place, reducing the number of people required to perform the task and the potential for errors. Below are two examples of a fascia bracket or a plastic part used to attach car parts to the frame. One is what's known as a "shoot and ship" bolt-on bracket, and the other is an engineered bracket like I used to sell. The cheaper bolt-on bracket requires assembly offline before installation and two assemblers to hold it in place while bolting it on. The other requires no assembly offline and only one person to snap it onto the car. GA is the easy place to speed up the process, and your vendors are your friend here. Let them pitch you on a more expensive part that reduces twice the cost increase of the part through reductions in labor and line speed.
4. To Cast or Not to Cast: Tesla's Austin-made Model Y casting reduced the car's required parts by 100. In making this switch, Tesla could construct the car's frame in one piece, eliminating the need for extra parts which were welded together in the traditional BIW process, making the car even lighter and more straightforward. From GM to Volvo to all the Chinese OEMs, casting machines from Tesla's supplier IDRA are shipping out monthly. Casting the underbody is the most innovative thing Tesla offered Auto manufacturing, but it's crazy hard to dial in and brutal if you make a mistake. That said, it will reduce fasteners, clips, and assemblies by the 100's, therefore, lowering costs and times to make a vehicle.
Tesla has disrupted the automobile industry by significantly reducing the number of parts required in manufacturing, executing a direct approach that has made them less reliant on suppliers, and reducing the complexity of the general assembly process. As other automakers strive to catch up and work to reduce carbon emissions, focusing on these areas of manufacturing and more in-house production is the way forward. With the push towards electric vehicles and the continued rise of Tesla's popularity, it's clear the traditional model of automotive manufacturing is being overthrown, paving the way for a simpler, more efficient future. Our team at Finding Engineered Solutions has the experience and software to help you do this moving forward and on previous programs. The goal is fewer fasteners, clips, and assemblies. Those are the number one drags on any vehicle cycle time.
Pic Credit - Stanley bracket Chevy Fascia Bolt on Bracket Spot Welding GA Pic Tesla Giga Press and BIW Line
