Small / economy car deathwatch: we've passed "peak econobox" again

[cRiPpLe_rOoStEr]

Originally Posted by JSH

GM switched the redesigned Onix from the Gamma platform to their new $5 billion GEM platform (GM Emerging Markets). The GEM platform is not designed to meet US standards

Since the new Onix got a higher score at Latin NCAP crash tests, presumably it wouldn't be so much harder to upgrade it to NHTSA standards than it was for Mitsubishi to do the same in the Mirage.

The Spark and Sonic are built on the Gamma platform

So is the Trax. Well, I must confess it did surprise me GM won't bring the new GEM-based Tracker to the U.S. and Canada as a replacement for the Trax like it's being implemented in other regions.

[JSH]

Originally Posted by cRiPpLe_rOoStEr

Since the new Onix got a higher score at Latin NCAP crash tests, presumably it wouldn't be so much harder to upgrade it to NHTSA standards than it was for Mitsubishi to do the same in the Mirage.

Those decisions are made when the car is redesigned. When Mitsubishi redesigned the Mirage in 2012 for the sixth generation they decided to make it compliant with North American standards.

Originally Posted by cRiPpLe_rOoStEr

So is the Trax. Well, I must confess it did surprise me GM won't bring the new GEM-based Tracker to the U.S. and Canada as a replacement for the Trax like it's being implemented in other regions.

The GEM platform is not for the USA or Canada. Different regions, different requirements, different platforms. We get the new 2021 Trailblazer (VSS-S Platform) instead of the Tracker

[cRiPpLe_rOoStEr]

Originally Posted by JSH

Those decisions are made when the car is redesigned. When Mitsubishi redesigned the Mirage in 2012 for the sixth generation they decided to make it compliant with North American standards.

It's not impossible to implement some upgrades to a platform already in production, just like Fiat did to the 500 in order to get it certified there.

We get the new 2021 Trailblazer (VSS-S Platform) instead of the Tracker

China gets both.

[JSH]

Originally Posted by cRiPpLe_rOoStEr

It's not impossible to implement some upgrades to a platform already in production, just like Fiat did to the 500 in order to get it certified there.

No it isn’t impossible, it just costs many millions of dollars.

It is far cheaper to just keep selling the Spark and Sonic.

[Fat Charlie]

And if you need to redesign to enter a market, it's cheaper and faster to simply incorporate those specs into the next generation of the platform. Why redesign an old platform for one market when you can simply redesign it?

[cRiPpLe_rOoStEr]

Originally Posted by Fat Charlie

And if you need to redesign to enter a market, it's cheaper and faster to simply incorporate those specs into the next generation of the platform. Why redesign an old platform for one market when you can simply redesign it?

Or maybe keeping the "outdated" platform since it's already compliant, or mixing some of its elements to the newer one.

BTW the new Tracker:

[JSH]

Originally Posted by cRiPpLe_rOoStEr

Or maybe keeping the "outdated" platform since it's already compliant, or mixing some of its elements to the newer one.

That is what they are doing with the Spark and Sonic - at least for now.

However keeping an old platform cost money too. You lose economy of scale as other vehicles move to new platform which increases piece prices for the old vehicle. You also lose savings that come with the new platform because every redesign includes cost savings through reduced assemble time and part design. A redesign is when the big savings come. A rule of thumb, about 80% of the assembly hours in a vehicle are based on the design and can’t be changed. Example - a part is installed with 5 bolts instead of 4. That extra bolt costs $.06 and it takes 10 seconds to install. A minute of labor is about $1 so that is $0.17. So total savings are $0.23 per bolt. That part is used on all the vehicles in the platform which can be 5 million per year. So that tiny change from removing 1 bolt saves the company $1.15 million per year

Pretty much every car manufacturer in the world has the goal to build all of their vehicles on 3-5 platforms. (Total globally) That doesn’t allow for old platforms to stick around. GM’s VVS is to build all of their vehicles on 4 platforms by 2025. That is down from 28 when the plan was announced. GEM is a middle step in the plan.

EDIT:

[cRiPpLe_rOoStEr]

Originally Posted by JSH

That is what they are doing with the Spark and Sonic - at least for now.

Even though the Sonic had been phased out basically everywhere else, the Spark may still soldier on for a while.

However keeping an old platform cost money too. You lose economy of scale as other vehicles move to new platform which increases piece prices for the old vehicle. You also lose savings that come with the new platform because every redesign includes cost savings through reduced assemble time and part design. A redesign is when the big savings come.

Repurposing older platforms, and eventually incorporating some cost-cutting measures on their manufacturing, used to be quite common in Latin America.

[JSH]

Originally Posted by cRiPpLe_rOoStEr

Even though the Sonic had been phased out basically everywhere else, the Spark may still soldier on for a while.

The Spark was redesigned for the 2016 model year and got a refresh for the 2019 model year. I expect it will stick around until 2021 when it is due to be refreshed. The replacement (if any) will likely move to the VVS-F platform

Originally Posted by cRiPpLe_rOoStEr

Repurposing older platforms, and eventually incorporating some cost-cutting measures on their manufacturing, used to be quite common in Latin America.

Used to be is key.

Automakers are being forced to spend billions of dollars developing electric vehicles and autonomous technology. Every dollar they can scrape together is needed and they cannot afford to fall behind their competition. The future is shared platforms manufactured at huge economies of scale. VW has shown it is possible and everyone else has to follow suite or become one of the many manufacturers that will disappear or be absorbed in the next decade.

[redpoint5]

If you get furloughed, I suggest creating a Youtube lecture series on your knowledge of the industry. Sandy M is pretty bad at talking on camera, yet I'm always looking forward to hearing what he has to say.