Over the past 100 years the European Automotive Industry has been repeatedly challenged by best practice. First by the United States, through the development of 'mass production' pioneered by Henry Ford and more recently by 'lean production techniques' as practised by the leading Japanese producers, particularly Toyota. It has consistently risen to these challenges and has shown it can compete and even outperform its competitors with world-class products. However, the European - dustry is now faced with growing competition and growth from new emerging low-cost countries and needs to re-define its competitive advantage to remain at the forefront of the sector. Automotive growth is driven by two factors, new m- kets and new technologies. Global competition is increasing, with technology and product differentiation becoming the most important sales factors, but with c- tinued cost pressure. Within the market the winners will be more profitable and the losers will disappear. The Automotive Industry makes a significant contribution to the socio-economic fabric of the European Union. Manufacturing output represents ?700 billion and research and development spending ?24 billion. European automotive suppliers number 5000 member companies and represent 5 million employees and generate ?500 billion in revenues. These are significant figures that generate wealth and high value employment within the EU. European firms must consistently improve their competitive position to ensure that the industry does not migrate to growing new markets.
Visit any modern car production line and you will be faced by a showcase of modern technology and advanced logistics combining in a clinical environment to produce rows of automobiles, each significantly different from the one before and after it. From stamping out the sheet steel body to driving a finished car off the line typically takes under 30 hours. However, if you try and buy a car to your specification you can expect to wait around 55 days, despite production lines frequently running below capacity. Why can't you have your car in 30 hours plus delivery time?
The challenge of mass customisation, building cars to customer order, brings great value to both the customer and the automotive industry. Building cars to customer order eliminates the need for companies to hold billions of dollars worth of finished stock. Any company able to free this capital would improve their competitive position and be able to reinvest in future product development. The benefits to all are clear and the first to market an operational build-to-order system will generate a significant cost advantage that may be difficult to emulate. The question for many automotive executives is not when but how exactly will such a radically 'different' business model operate.
Build To Order: The Road to the 5-Day Car addresses the conceptual and practical aspects for achieving the automotive industry's next goal: the rapid delivery to the customer of a bespoke vehicle only days after placing an order.
