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FEM growth to rely on cost benefits of modular assembly approach

Posted: 07 Aug 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Frost & Sullivan? front-end module? XX? XX? XX?

European Union guidelines on pedestrian safety is driving the adoption of modularization in vehicle assembly processes in the front-end modules (FEM) and systems market in Europe.

According to Vigneshwaran Chandran, a research analyst at Frost & Sullivan, the "innovative and cost-saving strategies" of suppliers will push "modularization in the European market for front-end modules and systems."

"In view of the benefits of cost savings and enhanced efficiency in manufacturing and assembly processes, vehicle manufacturers (VMs) expect suppliers to offer more innovative products, functional integration of front-end components and cost-reduction ideas to embrace modularization," Chandran said.

According to the press release from Frost & Sullivan, the value addition from suppliers will lead to flexibility in the final assembly as well as engineering and assembly cost advantages. The functional integration of components will also reduce the number of components and their weight, thereby enhancing module performance and improving overall module quality and price.

In the future, the press release further said, VMs will need to consistently evaluate the efficiency of in-house operations and subsequently, outsource non-core module assembly and program management activities to suppliers. In addition, consolidation of module operations and the involvement of suppliers in the early stages of the design and development processes will enable suppliers to improve their profit margins as well as the overall cost-efficiency of the module.

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