Mercedes changes way it develops cars

By Tony Lewin, Automotive News Europe

Stuttgart, Germany - Mercedes-Benz is changing the way it develops its future models.

Under the new system, engineers will choose from a growing supply of common components to build new cars. Previously, engineers developed dedicated systems for each new model series.

"We no longer have five different handles for five different vehicles. We have one perfect handle," Mercedes CEO Dieter Zetsche told Automotive News Europe here at last month's presentation of the new C class lower premium car, the first model to benefit from the new process.

Increased collaboration

Part of the change includes the restructuring of the carmaker's engineering and development teams.

"We have switched from a vertical organisation where the chief engineer was running the show to a [horizontal] situation where you have component teams that develop leading-edge systems that different models can share," he told ANE.

Some other examples of cost sharing between car lines include common seat structures, electronic architectures, sensors, wiring and software. Mercedes also went from using six sunroofs to one, reducing cost by 25 percent.

"We need to do more with fewer resources," Thomas Weber, head of Mercedes Car Group development, said in an interview with ANE.

The new C class will share its new electronic architecture with all future Mercedes models.

In addition, the new C class uses the same climate control module as the recently revised E class, and the new C class uses the same front axle as its predecessor.

More profitable models

When asked to quantify the savings, Zetsche said: "I could, but I won't."

He did reveal that Mercedes' new cars were "considerably more profitable" than their predecessors, and that double-digit productivity gains had been realised across "the entire production value chain."

"We will show even better results with the [next-generation] E class," he said.

Industry watchers say a number of carmakers use cross-platform component sharing because it can save millions.

"The greatest advantage is in terms of cost reduction, especially when it comes to major systems such as the powertrain, electronic architecture, HVAC and navigation system," said Mark Fulthorpe, an analyst at CSM Worldwide's London office. "Another quantifiable benefit is quicker launches of new models."

Other carmakers that freely share components, platform and modules include Volkswagen group, Renault-Nissan, General Motors, Fiat Group Automobiles and Ford Motor.

Jason Stein contributed

From Automotive news Europe (A Crain publication)