Article may be outdated

This article is 67 days old. Some details may have changed since publication.

Business Insider·4 min read·medium

Automakers are entering their decluttering era

Automakers are entering their decluttering era
✦AI Summary

Major automakers like Volkswagen and Toyota are reducing vehicle complexity and pruning overlapping models to cut costs. This strategy aims to improve competitiveness against lower-cost Chinese rivals and manage the financial burden of the transition to electric vehicles.

Why it matters

The shift toward simplified manufacturing reflects broader economic pressures and the changing landscape of the global automotive industry.

✦Dive DeeperCreate a free account to unlock

Automakers are taking a hard look at cutting costs. Many specialized vehicles and custom offerings are on the way out. Stellantis/© 2024 Stellantis Automakers are cutting overlapping models and reducing complexity amid fresh competition. Volkswagen and Toyota executives, for example, say too many variants are driving up costs. Shared platforms could make cars cheaper to build — and potentially cheaper to buy, execs hope. Chinese automakers are turning up the heat — and legacy car companies are responding by cutting complexity. Across the industry, auto executives are searching for ways to build vehicles more cheaply as lower-cost Chinese rivals expand into global markets. Their emerging strategy has one thing in common: decluttering. Automakers are pruning overlapping models, building vehicles with fewer parts, sharing more technology and production costs with partners , and rethinking how vehicles move from the design studio to the assembly line.

Continue reading on Headlinne

Create a free account to read the full article.

Read full article →
businesseconomytechnology
✦

Get smarter about the news

Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.

Create free account

Already have an account? Sign in