Fiat Chrysler aims to save $2.1 billion on parts standardization

The combined company's four most common architectures would form the underpinnings for 70 percent of the company’s lineup in 2018, up from 48 percent now.
Related Links
Related Downloads
Related Topics

DETROIT -- Fiat Chrysler Automobiles expects to save a total of 1.5 billion euros ($2.1 billion) in the next five years and reduce development costs on some products by as much as 70 percent through an effort to standardize parts across its global lineup.

The company plans to cut the number of “part families” by more than half, from 1,200 today to 550 by 2018, said Scott Garberding, its global head of purchasing. On an individual vehicle program, that could translate to savings of anywhere from 20 to 70 percent, he said.

“We gain volume advantages by being able to use the same part in multiple vehicles,” Garberding said during a presentation today. He said the cost savings would be achieved while ensuring that “quality will continue to be the most important metric.”

Fiat Chrysler plans to use 15 architecture families in 2018, three fewer than today. In 2018, 95 percent of the company’s volume would be based on nine architectures, also three fewer than today.

The four most common architectures would form the underpinnings for 70 percent of the company’s lineup in 2018, up from 48 percent now.

Mark Chernoby, head of engineering, said common architectures will be “an important element” of the company’s plan to meet rising fuel-economy regulations and other requirements.

You can reach Nick Bunkley at nbunkley@crain.com. -- Follow Nick on Twitter


advertising
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

Or submit an online comment below. (Terms and Conditions)


Newsletters & Alerts
Latest Headlines