In a significant move, 14 Japanese automotive and motorcycle companies are planning to establish an "International Standards Symposium" aimed at standardizing versatile components and in-vehicle semiconductors. This initiative is expected to streamline development and production processes, reduce costs, and ultimately strengthen the competitiveness of Japanese automobiles in the global market.
This approach echoes a trend that has been gaining momentum since the early 1990s, when the global economy faced a downturn. European automakers began focusing on designing common parts to control manufacturing expenses. Over time, they developed platform-based strategies that have continued to evolve. Many car manufacturers around the world have since adopted similar approaches, leveraging the benefits of component standardization to enhance efficiency and reduce costs.
Recent collaborations among 14 Japanese automakers reflect a growing trend of inter-firm cooperation, both between original equipment manufacturers (OEMs) and between OEMs and component suppliers. For example, in Europe, companies like Volkswagen and Daimler are working closely with major suppliers such as Bosch to standardize parts, aiming to cut down on development and production costs.
It's widely accepted that platformization and standardization of auto parts are key trends in the industry. When multiple parties collaborate on research, development, and innovation, it not only boosts technological advancement but also lowers costs across the supply chain. Component suppliers can avoid chaotic price wars, leading to more stable and sustainable business practices.
Ning Xiaoyang, chief engineer at China Auto Parts Industry Corporation, emphasized that part standardization improves R&D efficiency, shortens development cycles, reduces procurement costs, and minimizes quality risks for OEMs. However, some experts caution that large-scale component generalization may also bring certain challenges.
The process of pre-completion involves extensive testing and validation, which can be time-consuming. While standardization helps lower costs, it may also increase the risk of customer complaints if quality issues arise. Moreover, once a standardized part fails, it could trigger a chain reaction, leading to widespread recalls.
A notable example was Toyota’s massive recall in 2009–2010, which was caused by faulty parts from suppliers. Because these parts were used across multiple models on the same platform, the issue led to a large number of vehicle recalls. During that period, three major automakers also announced recalls of parts made by the same supplier on the same day—an unusual occurrence in Chinese automotive history.
Some industry observers worry about the impact of component standardization on China’s domestic brands and its local auto parts industry. However, Chen Guangzu, a well-known automotive expert, believes that this trend can actually benefit China’s auto parts sector. He argues that strategic alliances are now more important than ever, and China still has confidence in competing globally for basic components. Additionally, automakers typically prefer high-quality, locally sourced suppliers to achieve cost efficiency.
Chen also pointed out that in the past, over 80% of components were produced in-house by automakers. With the globalization of the automotive industry, manufacturers are now focusing more on R&D and vehicle development. Just like Apple, which doesn’t produce spare parts but develops integrated software systems, automakers are increasingly relying on specialized partners for component manufacturing.
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