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The characteristics and the role of modularity in the automotive business

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  • Mario Sergio Salerno

Abstract

Modularity is discussed in a broad sense, beyond proximity and physical production. The paper proposes a strategic view of the process, by considering modularity as an attempt to reduce the capital employed by assemblers to set up a plant, to share the risk of the business with first tier suppliers, and to reshape the boundaries of the companies by a type of relationship assembler-suppliers characterised by a special service relation in order to cope with the productive vulnerability inherent in a low inventory system. The evolution of modular plants in Brazil - a key country in the matter - is discussed from the modular consortium of the VW Resende plant to the newest passenger car plants set in the industrial condominiums system, particularly the GM Gravatai. The last section focuses on modularity and design activities and location, discussing the possibilities for decentralised design activities. Finally, some research questions are proposed.

Suggested Citation

  • Mario Sergio Salerno, 2001. "The characteristics and the role of modularity in the automotive business," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 1(1), pages 92-107.
    • Handle: RePEc:ids:ijatma:v:1:y:2001:i:1:p:92-107
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    Citations

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    Cited by:

    1. Yannick Lung, 2004. "The changing geography of the European automobile system," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 4(2/3), pages 137-165.
    2. Jesús Lampón & Pablo Cabanelas & Vincent Frigant, 2017. "The new automobile modular platforms: from the product architecture to the manufacturing network approach?," Post-Print hal-03187886, HAL.
    3. Vincent FRIGANT (E3i-IFReDE-GRES), 2004. "Modularity: the foundations of an architect firm? (In French)," Cahiers du GRES (2002-2009) 2004-02, Groupement de Recherches Economiques et Sociales.
    4. Vincent FRIGANT, 2011. "French mega-suppliers’ trajectories during the modular era: some evidences on Faurecia, Valeo and Plastic Omnium," Cahiers du GREThA (2007-2019) 2011-20, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    5. Vincent FRIGANT, 2007. "Ten years of modularity: empirical evidences on the restructuring of the auto part industry (In French)," Cahiers du GREThA (2007-2019) 2007-15, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    6. Vincent FRIGANT (E3i, IFReDE-GRES), 2005. "Proximities in Modular Production: an Analysis of the Globalization of the Automotive Fisrt Tier Suppliers (In French)," Cahiers du GRES (2002-2009) 2005-11, Groupement de Recherches Economiques et Sociales.
    7. Salerno, Mario Sergio, 2009. "Reconfigurable organisation to cope with unpredictable goals," International Journal of Production Economics, Elsevier, vol. 122(1), pages 419-428, November.
    8. Vincent Frigant & Damien Talbot, 2005. "Technological Determinism and Modularity: Lessons from a Comparison between Aircraft and Auto Industries in Europe," Industry and Innovation, Taylor & Francis Journals, vol. 12(3), pages 337-355.
    9. Yannick LUNG (E3i-IFREDE-GRES & GERPISA), 2006. "Mercosur in carmakers’ internationalisation trajectories (In French)," Cahiers du GRES (2002-2009) 2006-03, Groupement de Recherches Economiques et Sociales.
    10. Vincent Frigant, 2007. "Between Internationalisation and Proximity: the internationalisation process of automotive first tier suppliers," Post-Print hal-00257463, HAL.
    11. Morganti, Daniele & De Giovanni, Pietro, 2022. "Offshoring motivations driven by sustainability factors," Research in Transportation Economics, Elsevier, vol. 95(C).
    12. Cheng, Liang-Chieh (Victor), 2011. "Assessing performance of utilizing organizational modularity to manage supply chains: Evidence in the US manufacturing sector," International Journal of Production Economics, Elsevier, vol. 131(2), pages 736-746, June.
    13. Martin Krzywdzinski, 2021. "Automation, digitalization, and changes in occupational structures in the automobile industry in Germany, Japan, and the United States: a brief history from the early 1990s until 2018 [Managing fle," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(3), pages 499-535.
    14. Giuseppe Aiello & Salvatore Quaranta & Antonella Certa & Rosalinda Inguanta, 2021. "Optimization of Urban Delivery Systems Based on Electric Assisted Cargo Bikes with Modular Battery Size, Taking into Account the Service Requirements and the Specific Operational Context," Energies, MDPI, vol. 14(15), pages 1-17, August.

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