Car makers around the world are reevaluating their production methods in order to reduce the high cost of electric vehicles (EVs) and compete with Chinese manufacturers and Tesla. The shift from combustion engines to electric power has prompted a radical rethink of car manufacturing, with a focus on efficiency and cost-saving.

The factory has become a key area of focus for cost reduction among car companies, as it is an area they can directly control. Car makers are reviewing every aspect of production to counter the productivity of Chinese manufacturers and the cost-effectiveness of Tesla.

The automotive industry is undergoing a transformation, with survival at stake, according to Kazuaki Shingo, head of production at Toyota. Tesla’s relentless focus on reducing the cost of building its cars has allowed it to lower the price of its Model 3 and Model Y, forcing traditional car makers to follow suit.

Tesla has achieved cost savings through various innovations. One of these is the use of ‘gigacasting’ to mold large portions of the underbody, replacing multiple metal pieces. Tesla has also simplified the specifications of its cars, removing features that it believes customers can do without.

Tesla’s next-generation cars, set to enter production in 2025, will be 50% cheaper to build than the current models. One method Tesla plans to use is a new manufacturing process called ‘unboxing’, which involves assembling the car in modules rather than welding body parts together. This allows for greater operator density and shorter assembly lines.

Toyota, known for its production system, has also embraced innovations to speed up EV manufacturing. The company has split the car into three modules – front, middle, and rear – making it easier for factory operatives to work on. Toyota is also exploring gigacasting and increasing automation within logistics.

Breaking the inflexibility of traditional conveyor-belt systems will be crucial in the future, especially when car makers want to save costs by running multiple models with different drivetrains down the same line. Flexibility is key, and companies like ABB are developing standardized but flexible robot ‘cells’ for the body shop.

However, increasing automation does not always decrease costs, especially in countries with lower labor costs. It takes longer to realize the savings from the investment in automation. Volkswagen, for example, is looking to simplify its range of models rather than increase the number of variants, as Tesla’s unboxed process suggests.

Reducing range complexity and increasing production speed are essential for reducing manufacturing costs. Car makers must ensure there is a ready market for the cars they produce efficiently.

In conclusion, the shift to electric power has prompted car makers to rethink their production methods and focus on efficiency and cost-saving. Innovations such as gigacasting and modular assembly are being adopted to reduce costs and increase production speed. Flexibility and simplicity are key factors in achieving these goals. Car makers must adapt to survive in this era of transformation in the automotive industry.