As the demand for vehicles and efficiency grows for 2015 new cars it is apparent that we will be witness to some drastic changes in the automotive industry. The industry is making changes that show promise for efficiency as well as profitability for car makers. If we look at the Volkswagen Group and their future plans for business structure it looks as though they will be basing their vehicles efficiency and carbon output on the most stringent standards such as the state of California. If the vehicle is built to pass the most stringent pollution and efficiency standards means that they can move on to developing that vehicles powertrain around these standards. With the Volkswagen group moving to a “global design” means they can boost efficiency in the manufacturing sector by lowering costs due to the fact that a model of vehicle will share all parts throughout its design with the only main difference being whether it is right or left hand drive. This cuts down on the cost of engineering as well as streamlines development and manufacturing.
Ford Motor Company’s CEO Alan Mulally had also similar intentions as he had much success with his previous company Boeing. Trying to cut the fat and do away with less successful models and automotive branches in order to focus on what was selling became a popular business tactic. With auto groups dealing with tougher economic times as well as labor disputes and the rest of the headaches that come with the territory means that changes had to be made in order to keep these companies in the black.
The main downside to streamlining the global design is that if there happens to be a massive recall means that the company will be affected globally as well. After looking at the numbers and the previous success with this type of project, means those 2016 new cars may have more in common with its overseas models than ever before. A possible downside would be the loss of large liter engines as we know that certain vehicles such as the 2015 New Ford Mustang will be introduced to Europe sporting only an Ecoboost 4-cylinder engine. Likely the engine will be from 265-300hp which will be sporty yet efficient but will not be so popular to the Gearheads of the U.S. and Australian markets.
This is cause for our next issue, though a global design is money saving and more profitable in the long run doesn’t mean that the taste is the same for global markets. A perfect example is the fact that diesel is popular amongst European buyers yet there are far fewer 2014 cars running diesel powertrains in the United States market. Although Californian emissions are to blame for some and especially my favorite truck the Toyota Hilux, so is the fact that American buyers are still turned off at the thought of a diesel just due to naiveté. So when it comes to 2015 new cars and trucks we will see that our vehicles make be a perfect clone of itself across the pond.