Led by a new Ford purchasing strategy, plus recent announcements by major engine-component suppliers, "modular mania" is about to hit the powertrain arena in a big way.
Beginning with its 2003 model range, Ford will source its transmission components on a modular, rather than individual-part basis. It will require suppliers of such items as clutch packs, torque converter units and control systems to ship them as complete, ready-to-install subassemblies, or risk losing the automaker's business. The move is part of Ford's socalled Powertrain Modularity Strategy, which also involves engine supply.
On the supply side, component giants Eaton Corp. and Teksid S.p.A recently agreed to design, develop, manufacture and market complete cylinder head units for passenger cars and light trucks. The deal, which is globally focused, combines the valvetrain capabilites of Eaton with the aluminum casting expertise and 30-plant capacity of Teksid, a flat Group subsidiary. Eaton will serve as the Tier 1 integrator, assembling the entire cylinder head (complete with camshafts and valvegear) and shipping it to customers' engine plants, ready for fitment to the cylinder block. The Eaton-Teksid deal promises to save time and cost, versus the traditional process of building up heads piece-by-piece in automakers' engine plants.
Freudenberg-NOK will supply total seating systems on a 2001 global engine program, and is developing a similar global transmission sealing deal with Ford.
The moves come as automakers reduce their total number of engine and transmission families, and commonize componentry, as they are also doing in the rest of the vehicle This enables them to also slash their powertrain supply bases, just as they're doing with their other supply chains.
"This is just the beginning of modules' aggressive move into powertrain," observes supplier industry analyst Greg Janicki of CSM Worldwide in Northville, Mich He notes that while modular supply is already utilized in some piston assemblies, intake systems and valvetrain hardware, sourcing tum-key cylinder heads from a supplier would be a profound move for automakers, which have always held engines as a core competency.
"Our suppliers need to be aware of the new strategy," warns Ford advanced technology development engineer Joe Khanuja. He told
AI's sister publication, American Metal Market, that his compny "will be doing business in a new and different way." Many transmission component vendors which currently do not make modules could lose their Ford business, unless they develop modular subassemblies or relinquish their Tier 1 status and become a Ner 2 or lier 3 supplier to another Tier 1 integrator. At a recent metals industry conference, Khan i;ja said Ford has already explained the new powertrain sty to some powertrain suppliers, and will present it to its entire supply chain soon. -Lindsay Brooke
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