At one time, vertical integration was the low-cost strategy for major automakers. At Ford’s legendary Rouge operation, it was said that iron ore went in and vehicles drove out.
Today, OEMs are driving more and more design and subassembly work to Tier One suppliers. Could this practice evolve to the point where automakers no longer actually make automobiles? It’s possible.
GKN Driveline has become the first Tier One supplier ever to deliver a complete all-wheel-drive (AWD) system for a vehicle manufacturer. The company designed, developed and manufactures the all-wheel drive systems for a new AWD global platform launched by Fiat Chrysler automobiles (FCA). The platform is the basis for the FIAT 500X and the Jeep Renegade.
Drive system development and manufacturing in-house
"This is a milestone program for GKN in our evolution as a driveline system integrator, said GKN global program director Hannes Prenn. “This is the first time a supplier has been responsible for the design, development and production of a complete all-wheel drive system. “
The FCA platform sources the complete driveline – from transmission to wheel – from GKN, including AWD, AWD Disconnect and front-wheel drive variants. Every part of the system is designed by GKN and manufactured by the company's global production facilities.
To meet the tight packaging targets of a compact SUV and small city car, GKN integrated a number of key features of the driveline system. This saved space and optimized cost and efficiency. Instead of a standard power transfer unit (PTU), the firm developed a monobloc housing that fully integrates the propshaft's constant velocity joint.
"This is a new technical solution and a remarkable piece of engineering, which involved close inter-functional development," said Prenn. "The result is a high-performance system that offers optimum efficiency, weight and packaging. The arrangement also yields superior NVH characteristics, helping to create a more refined driving experience."
The same hardware is able to fulfill requirements for different brands and classes of vehicle, from city cars to off-roaders. GKN achieves this by “tuning” software to meet different brands' specific requirements. A city car version may require low drag torques and torque biasing, while a model intended for off-road use requires high traction and torques.
Will carmakers still make cars?
Some assemblies, such as frames, door modules and even entire bodies-in-white have been engineered by Tier Ones for OEMs in the past. Drivelines, however, have traditionally been OEM engineered and are unique to each manufacturer. This trend is changing, starting with automatic transmission technology.
The 6T70 automatic transmission was developed jointly by Ford and GM. Outsourcing may replace collaboration as development costs must be amortized over longer production runs.
Transmissions are expensive to develop and three generations of automatics have been engineered jointly by Ford and General Motors. However, there is a risk to large-scale component sharing. One is a consumer perception that rival brands are in fact the same. Another is the possibility that a one-size-fits-all approach may not produce the best technology for a given vehicle.
For transmissions, changes and control software give each automaker’s products a unique “feel.” In the GKN all-wheel drive system, it will be up to the chassis dynamics engineering teams to develop a distinct “personality.” They will have to make sure that GKN-equipped vehicles with different nameplates do not perform and feel the same to consumers.
If this trend continues, it is possible that future “automakers” may become marketing, sales and distribution firms, reselling contract products under established brand names. Manufacturers who use technology as their principal selling feature, such as Porsche, may have difficulty utilizing “generic” major assemblies. Unless the principal engineering occurs with the OEM and/or the design is exclusive to the manufacturer.
Porsche should know about this: the 924 used an Audi-derived engine (which AMC also adapted for the Gremlin and Spirit), and the result was not well-received by sports car enthusiasts. The firm later developed a replacement engine in-house, addressing the criticism and re-naming the car the 944. For some carmakers, in-house engineering capability will still be essential. For many, perhaps the majority, Tier Ones may be the future of original equipment manufacturing.
About GKN Driveline
GKN Driveline is a leading global producer of CVJ Systems, AWD Systems, Trans Axle Solutions and eDrive Systems and operates in 22 countries at 46 locations employing approximately 26,500 people.