Emerging markets need global platforms - The Inside Line - car makers developing global cars - Brief Article

Automotive Industries, Jan, 2002

For several years, emerging markets have been inundated by technologically antiquated platforms discarded from the First World that somehow were still marketable in more marginal markets. While the technology and tooling were amortized several years before, consumers in these markets required only basic and inexpensive transportation. These countries have accepted these models -- traditionally. However the tradition is quickly changing.

Asians are increasingly becoming transparent to western trends and styles (through trade, the media and the Internet) and starting to demand the equivalent products, quality and price that consumers in the developed world enjoy. Global platforms do not come without a price, however. A globally rationalized platform can be sourced from several locations -- placing pressure on all facilities to maintain leading-edge productivity and quality levels.

The majority of global OEMs are not only in the planning stages of globally rationalized platforms, but many are in the production phase. Toyota currently leads the charge with three major global platforms: the NBC (Charade, Vitz), the MV (Kijang, Hilux and Zace), and the Corolla (Altis). Volkswagen, Mitsubishi, Ford, Fiat and PSA are currently developing global platforms for several Asian locations as well.

Global platforms in the emerging markets will exhibit a growing presence. While initially destined for local consumption, smarter OEMs understand that it is only a matter of time before the emerging markets become rationalized into the global industry.

--CSM Worldwide

www.csmauto.com

Global Platforms in China

OEM     Global Platform  Production Date

Ford    BE91/B146 (Ikon)      2002
GM       GM4200 (Sail)        2001
Honda     CS (Civic)          2002
          KI (Accord)         2002
Toyota   NBC (Charade)        2002
          NBC (Vitz)          2002
VW       VW240 (Polo)         2002

Source: CSM Worldwide/www.csmauto.com