Automobile in Bangladesh Essay

International University Of Bussines Agriculture And Technology. Abstuct: Automobile is the one popular side of engineering. Now-a-days the demand of automobile product is rising high. But automobile is not developed much and it is so rare for our Bangladeshi people. Bangladesh is developing country but here automobile product is not available. And the automobile product price is high for get ride from this problem we have to developing. our automobile side here,I disscuss about problem of developing automobile, Key word: automobile, Introduction: An automobile, autocar, motor car or car is a wheeled motor vehicle used for transportin passengers, which also carries its own engine or motor. Most definitions of the term specify that automobiles are designed to run primarily on roads, to have seating for one to eight people, to typically have four wheels, and to be constructed principally for the transport of people rather than goods. [3] The year 1886 is regarded the year of birth of the modern automobile – with the Benz Patent-Motorwagen, by German inventor Carl Benz. Motorized wagons soon replaced animal-drafted carriages, especially after automobiles became affordable for many people when the Ford Model T was introduced in 1908. The term motorcar has formerly also been used in the context of electrified rail systems to denote a car which functions as a small locomotive but also provides space for passengers and baggage. These locomotive cars were often used on suburban routes by both interurban and intercity railroad systems. [4] An automobile platform is a shared set of common design, engineering, and production efforts, as well as major components over a number of outwardly distinct models and even types of automobiles, often from different, but related marques. [2] It is practiced in the automotive industry to reduce the costs associated with the development of products by basing those products on a smaller number of platforms. This further allows companies to create distinct models from a design perspective on similar underpinnings. [2] Etymology: The word automobile comes, via the French automobile from the Ancient Greek word (autos, â€Å"self†) and the Latin mobilis (â€Å"movable†); meaning a vehicle that moves itself. The loanword was first adopted in English by The New York Times in 1899. [7] The alternative name car is believed to originate from the Latin word carrus or carrum (â€Å"wheeled vehicle†), or the Middle English word carre (â€Å"cart†) (from Old North French), in turn these are said to have originated from the Gaulish word karros (a Gallic Chariot). [8][9] Description: Definition and benefits: Platform sharing is a product development method where different products and the brand attached share the same components. The purpose with platform sharing is to reduce the cost and have a more efficient product development process. [4] The companies gain on reduced procurement cost by taking advantage of the commonality of the components. However, this also limits their ability to differentiate the products and imposes a risk of losing the tangible uniqueness of the product. The companies have to make a trade-off between reducing their development costs and the degree of differentiation of the products. [3] A basic definition of a platform in automobiles, from a technical point of view, includes: underbody and suspensions (with axles) — where the underbody is made of front floor, underfloor, engine compartment and frame (reinforcement of underbody). [5] Key mechanical components that define an automobile platform include: * The floorpa, which serves as a foundation for the chassis and other structural and mechanical components * Front and rear axles and the distance between them – wheelbase * Steering mechanism and type of power steering. * Type of front and rear suspensions * Placement and choice of engine and other powertrain components * Ford Ka * Fiat Panda * Fiat 500 * Fiat Uno Vehicle platform-sharing combined with advanced and flexible-manufacturing technology enables automakers to sharply reduce product development and changeover times, while modular design and assembly allow building a greater variety of vehicles from one basic set of engineered components. [6] Many vendors refer to this as product or vehicle architecture. The concept of product architecture is the scheme by which the function of a product is allocated to physical components. [7] The use of a platform strategy provides several benefits:[5] * Greater flexibility between plants (the possibility of transferring production from one plant to another due to standardization), * Cost reduction achieved through using resources on a global scale, * Increased use of plants (higher productivity due to the reduction in the number of differences), and * Reduction of the number of platforms as a result of their localization on a worldwide basis. The automobile platform strategy has become important in new product development and in the innovation process. [8] The finished products have to be responsive to market needs and to demonstrate distinctiveness while — at the same time — they must be developed and produced at low cost. [5] Adopting such a strategy affects the development process and also has an important impact on an automaker’s organizational structure. [5] A platform strategy also offers advantages for the globalization process of automobile firms. [9] Because the majority of time and money by an automaker is spent on the development of platforms, platform sharing affords manufacturers the ability to cut costs on research and development by spreading the cost of the R&D over several product lines. Manufacturers are then able to offer products at a lower cost to consumers. Additionally, economies of scale are increased, as is return on investment. [2][10] Examples. Originally, a â€Å"platform† was a literally shared chassis from a previously-engineered vehicle, as in the case for the Citroen 2CV platform chassis used by the Citroen Ami and Citroen Dyane, and Volkswagen Beetle frame under the Volkswagen Karmann Ghia. Platform sharing has been a common practice since the 1960s when GM used the same platform in the development of the Pontiac LeMans, the Buick Skylark, the Chevrolet Chevelle, and Oldsmobile Cutlass. In the 1980s, Chrysler’s K-cars all wore a badge with the letter, â€Å"K†, to indicate their shared platform. In later stages, the â€Å"K† platform was extended in wheelbase, as well as use for several of the Corporation’s different models. Fiat Croma| Cadillac BLS| Opel Vectra C| GM used similar strategies with its â€Å"J† platform that debuted in mid-1981 in four of GM’s divisions. Subsequent to that, GM introduced its â€Å"A† bodies for the same four divisions using the same tread width/wheelbase of the â€Å"X† body platform, but with larger body work to make the cars seem larger, and with larger trunk compartments. They were popular through the 1980s, primarily. Even Cadillac started offering a â€Å"J† body model called the Cimarron, a much gussied up version of the other four brands’ platform siblings. A similar strategy applied to what is known as the N-J-L platform, arguably the most prolific of GM’s efforts on one platform. Once more, GM’s four lower level divisions all offered various models on this platform throughout the 1980s and into the 1990s. 1986 Opel Ascona C| 1988 Pontiac Sunbird| 1988 Cadillac Cimarron| Daewoo Espero|. Japanese carmakers have followed the platform sharing practice with Honda’s Acura line, Nissan’s Infiniti brand, and Toyota’s Lexus marque, as the entry-level luxury models are based on their mainstream lineup. For example, the Lexus ES is essentially an upgraded and rebadged Toyota Camry. [11][12][13][14] After Daimler-Benz purchased Chrysler, Chrysler engineers used several M-B platforms for new models including the Crossfire which was based on the M-B SLK roadster. [15] Other models that share platforms are the European Ford Focus, Mazda 3 and the Volvo S40. [16] Differences between shared models typically involve styling, including headlights, tail lights, and front and rear fascias. Examples also involve differing engines and drivetrains. In some cases such as the Lexus ES that is a Toyota Camry, â€Å"same car, same blueprints, same skeleton off the same assembly line in the same factory†, but the Lexus is marketed with premium coffee in the dealership’s showroom and reduced greens fees at Pebble Beach Golf Links as part of the higher-priced badge. [17] Platform sharing may be less noticeable now, however, it is still very apparent. Vehicle architectures primarily consist of â€Å"under the skin† components, and shared platforms can show up in unusual places, like the Nissan FM platform-mates Nissan 350Z sports car and Infiniti FX SUV. Volkswagen A platform-mates like the Audi TT and Volkswagen Golf also share much of their mechanical components but seem visually entirely different. Volkswagen Group and Toyota have both had much success building many well differentiated vehicles from many marques, from the same platforms. One of the least conspicuous recent examples is the Chevy Trailblazer and Chevy SSR; both use the GMT-360 platform. Opel Astra and Chevy HHR also share a platform yet are visually entirely different. History: One hundred years ago, the first Model T automobile was made. The Model T automobile was not the first car to be built, but it was the first widely affordable mass-produced car. The first Model T was built for sale on October 1, 1908, at a price of about $850. Between 1908 and 1927, a total of 15 million Model Ts were sold. By the 1920s, half of all the cars in America were model Ts. The 1925 Model T touring car cost about $260 at a time when the average annual income in America was $1236. 1 In January 1906, Dr. C. C. Bachman purchased the first automobile to be owned in Waterloo. His car was a 15 horsepower Pope that he purchased at the automobile show in New York City. In July of that same year, H. I. Buttery purchased a 25 horsepower Pope Hartford automobile that he drove from Syracuse to Waterloo. 2 Automobiles, however, had been seen in Waterloo and Seneca County before 1906. John E. Becker in his A History of the Village of Waterloo states that The Automobile Review of August 13, 1904, gave an extended account of LaRoche’s 3,314 non-stop round-trip run between New York City and St. Louis. Included in this account is this paragraph: â€Å"Between Syracuse and Rochester, at Seneca Falls I think it was, I got stuck in the mud and it took me five hours of hard work to dig the machine out and get started again. My hands are covered with blisters from the work! † This incident is said to have happened just west of the village of Seneca Falls and â€Å"illustrates one of the drawbacks to automobiling through the country. † It was also reported just a few years later that the village of Waterloo was â€Å"known from coast to coast† as having some of the worst streets over which automobiles had to pass in crossing the continent. 3 Becker’s History also reports that seventy-six automobiles came through Waterloo on. Association, covering a distance of 4135 miles in sixteen days. The object of the race was to see which make of machines would last the longest and perform the best work as to endurance and keeping in repair. Becker reported that â€Å"Main Street was lined with sightseers who were well repaid for ‘looking. ’ It took the entire afternoon for the passage of the ‘Cars’ through the village. Late in the forenoon came the pilot cars and finely cut strips of paper (called confetti) were thrown from them to mark the route, which through the business section was on the south side of the street. There were about 300 passengers in the whole number, of whom fifteen were ladies. The latter wore the customary veiling, while the men were generally clad in long brown linen dusters with the regulation caps and goggles. †4 According to a 1967 Reveille article written by June Callahan, what is today the Peter Koch car dealership at 221-229 Fall Street in Seneca Falls was the scene of the manufacture of the Iroquois automobile. The Iroquois Type D car was a 35 horsepower touring car, with a 100 inch wheelbase and was sold F. O. B. Seneca Falls for $2,500. The Iroquois Type E was a 40 horsepower, 7 passenger car with 4. 5 by 32 inch tires and platform springs on the rear, with a selling price of $3,000 F. O. B. Seneca Falls. John Kaiser was the President of the Iroquois Motor Car Company between 1903 and 1909. Only thirteen cars were actually built but they were a good car. The small number of vehicles produced was largely because Mr. Kaiser’s approach to building an automobile was considerably different from today’s procedures. He took his technique from the carriage makers—he built his cars to last. He considered a $3,000 automobile to be a very serious investment and he expected his customers to drive his cars for twenty years or more. Because he wanted to build durability into his cars, he inspected and re-inspected every part and he and his employees assembled the entire automobile. In 1909, the company dissolved because of lack of business. Ms. Callahan speculated in her article that â€Å"had Mr. Kaiser thought the same way as Henry Ford, maybe the Iroquois Motor would be a booming industry in Seneca Falls today†¦. †5 In that same article, Callahan reported that â€Å"the streets of Seneca Falls were traveled in the years that followed by many makes that are no longer in production. † These include the American Under-Slung that Norman Gould owned; Fred Fisher owned a Winton; Walter Ward, Sr. owned a Mora; Dr. Horton had an Overland; Charlie Fegley had a Reo; Harry Fredenburg had a Franklin; Paul Perkins, Sr.had a Savon; W. E. Dickey had a Page; and Mrs. Partridge had a Pearce Arrow. The May 30, 1913, issue of the Seneca Falls Reveille noted that people in Seneca Falls had auto fever. There were 89 Model Ts, plus a number of other car makes in the village. In January 1921, there were 2,073 autos and trucks in the county and by September of that same year the number had increased to 2,945. On October 27, 1922, Fred L. Huntington leased a building at Fall and Mynderse Streets for auto sales. 6 Getting an early automobile started,especially once it stalled out, was not an easy task. Virtually everyone knows of the necessity of â€Å"cranking† the motor. Not everyone knows, however, of the â€Å"runaway automobile† incident on September 17, 1917, in Waterloo. Just as the crowd was dispersing from the New York Central Railroad Station after seeing off a largecontingent of Seneca County young men entering the army for war duty, William Redfield’s big Studebaker car became stalled at the main village intersection. When it wouldn’t start, a number of helping hands gave it a push. The car was still in gear and there was no driver in the seat. The runaway car struck another car and then took to the sidewalk where it tore down awnings along the street. In front of Semtner’s tailor shop the car struck and killed H. Eugene Van Buren who was repairing the sidewalk. The auto then struck two little girls and then a tree in front of John C. Shanks’ residence on the corner of Church and Main Streets. The runaway car then bounded across the street and crashed into the house of Edward Conant just east of the Presbyterian Church. Becker summarized the incident with the comment, â€Å"Every part of the auto’s driverless trip down the street was a freak occurrence. †7 If you want to see this wellpreserved 1903 Ford Model A car, you simply have to go to the N. R. Boyce car dealership in Ovid. They have had this car on display since about 1949. To clarify why it is called a 1903 Ford Model A, early Ford cars were simply lettered model A, then model B, etc. until the Model T proved so popular that Ford kept producing that Model T for severa years. Then Ford went back to producing a new Model A. As the picture at right shows, the 1903 Ford Model A was chain-driven. The car often had the problem of mud, etc. clogging up the operation. 8 As automobiles were increasing in number, our villages were changing as well. Waterloo, for example, erected its first street signs in late 1910. 9 In June 1913, a five year contract was made with Central New York and Electric Co, providing for all night street lighting in Waterloo. This lighting consisted of five ornamental cluster lamps of 60 candlepower each to be placed on each side of Main Street, 100 feet apart. 10 Also in 1913, the village of Waterloo designated street numbers for houses and business places so that free postal delivery could be instituted in the village of Waterloo on September 1, 1913. 11 The Waterloo village board on May 6, 1914,resolved to have East Main, Washington, and River Streets, paved as part of the new state. Highway Law, by which the state, the county, the village and adjoining property owners would pay for the improvement. 12 The rapid increase in the number of automobiles led to the development of many autorelated businesses such as gas stations and tourist cabins. One of the most interesting examples in Seneca County was the Windmill Tourist Camp just west of Seneca Falls. The windmill itself was built in 1929. The Camp had a total of 15 cabins, as many as nine gas pumps, and a restaurant and gift shop. It should also be noted that the rise of the automobile helps to explain the demise of streetcars and railroads in our county and nationwide. 13 In 2007 there were 28,143 registered automobiles in Seneca County for a population of about 33,000, and a total of 24,758 driver’s licenses. 14 Seeing areally old car like a Tin Lizzie while driving along on a highway today promptsstrong reaction and for good reason. Maybe it’s simply because cars today arejust so different in appearance from those old cars. Or perhaps those old cars give us pause to think nostalgically of a time when life itself and the very pace of life were so different. Automobile Industry Automobile industry is a symbol of technical marvel by human kind. Being one of the fastest growing sectors in the world its dynamic growth phases are explained by nature of competition, product life cycle and consumer demand. Today, the global automobile industry is concerned with consumer demands for styling, safety, and comfort; and with labor relations and manufacturing efficiency. The industry is at the crossroads with global mergers and relocation of production centers to emerging developing economies. Due to its deep forward and backward linkages with several key segments of the economy, the automobile industry is having a strong multiplier effect on the growth of a country and hence is capable of being the driver of economic growth. It plays a major catalytic role in developing transport sector in one hand and help industrial sector on the other to grow faster and thereby generate a significant employment opportunities. Also as many countries are opening the land border for trade and developing international road links, the contribution of automobile sector in increasing exports and imports will be significantly high. As automobile industry is becoming more and more standardized, the level of competition is increasing and production base of most of auto-giant companies are being shifted from the developed countries to developing countries to take the advantage of low cost of production. Thus, many developing countries are making serious efforts to grab these opportunities which include many Asian countries such as Thailand, China, India and Indonesia. The rising competition and increasing global trade are the major factors in improving the global distribution system and has forced many auto-giants such as General Motors, Ford, Toyota, Honda, Volkswagen, and Daimler Chrysler, to shift their production bases in different developing countries which help them operate efficiently in a globally competitive marketplace. During the second half of the 1990’s, the globalization of the automotive industry has greatly accelerated due to the construction of important overseas facilities and establishment of mergers between giant multinational automobile manufacturers. Over the years, it is being observed that Asia is emerging as a global automotive hub. Exports of automobiles including components from Asia are also increasing by leaps and bounds. Asia has become the major consumer as well as supplier of automobiles. At this juncture, the study makes an attempt to evaluate the growth pattern, changes in ownership structures, trade pattern, role of government etc. in automobile sector of selected Asian countries (viz. China, India, Indonesia and Thailand). The objective of the study is to understand the dynamics of Indian automobile sector in comparison to the same sector in other selected Asian countries. Thailand is a major auto exporting country from Asia. The sector is mainly driven by Japanese FDI. Chinese automobile sector is growing very fast and is poised to make its dent in the internationalhand is consolidating its position with strong domestic and external demand. The Indonesian automotive industry is essentially an assembly industry, dominated by the major Japanese car manufacturers is also coming up in post-liberalization period and increasing its exports. Japan and Korea Rep already have developed automobile industry. Hence, comparison with these two countries may not be worthwhile. Selected four are developing countries and making an effort to develop the automobile sector through different paths. The paper will compare the alternative strategies for the growth of automobile industry in these selected countries The production of automobiles in volume began in the early 1890s, in Western Europe. The USA started the production of both electric and gas automobiles by 1896. In 1903, Ford stepped in. The price of cars reduced from USD 850 in 1908 to USD 360 in 1916. The great depression and the World Wars saw a drop in sale; but the 1950s and 1960s were the glorious era for automobiles (driven by Ford, GM and Chrysler). Production reached 11 million units in 1970. Industry specialists indicate that international business in the automobile industry dates back to the technology transfer of Ford Motor Company’s mass-production model from the U. S. to Western Europe and Japan following both World Wars I and II. This gives rise to two important trends. The first one is that, the advancements in industrialization led to significant increase in the growth and production of the Japanese and German automotive markets. The second important trend was that due to the oil embargo from 1973 to 1974, the export of fuel efficient cars from Japan to the U. S. Earlier due to low fuel prices, US was producing ‘muscle cars’ but after the oil price shocks US had to compete with Europe and Japan who succeeded in producing fuel efficient cars. For the first time, design, marketing, prices, customer satisfaction etc become important in the automobile market. By 1982, Japan became the world leader in US market. The potential growth opportunities led to global overcapacity in automobile industry. 1990s observed the merger and acquisition (M&A) and formation of strategic alliances to tackle this overcapacity problem. Increasing global trade also act as a major factor for rising growth in world commercial distribution systems, which has also increased the global competition amongst the automobile manufacturers. Japanese automakers have instituted innovative production methods by modifying the U. S. manufacturing model. They are also capableof adapting and utilizing technology to enhance production and increase product competition. There are three major trends of world automotive industry, which are discussed briefly bellow: Global Market Dynamics – The world’s leading automobile manufacturers continue to invest into production facilities in emerging markets in order to reduce production costs and therefore rise in profits. These emerging markets include Latin America, China, Malaysia and other markets in Southeast Asia. Establishment of Global Alliances – Now-a-days, there is trend of joint venture in global automotive industry. Most of the giant automobile manufacturers are merging with each others. The big three U. S. automakers (GM, Ford and Chrysler) have merged with, and in some cases established commercial strategic partnerships with other European and Japanese automobile manufacturers. The Chrysler Daimler-Benz merger, were initiated by the European automaker in order to strengthen its position in the U. S. market. Overall, there has been a trend by the world automakers to expand by merging with other giant automotive companies in overseas markets*. Industry Consolidation – Increasing global competition amongst the global manufacturers and positioning within foreign markets has divided the world’s automakers into three groups, the first group being GM, Ford, Toyota, Honda and Volkswagen, and the two remaining group manufacturers attempting to consolidate or merge with other lower group automakers to compete with the first group companies† . Diagram1 provides a snapshot view of this. World automotive industry, in its early stages of development, was concentrated mainly in hands of developed countries like U. S. , Japan etc. But as automobile industry become more and more standardized, the production base of most of auto-giant companies was shifted from the developed countries to developing countries. Standardization makes production more profitable in developing countries due to low cost of labor. That’s why countries like Thailand, China today are the main production base for many multinational automobile companies, and that explain why this study is concentrated only on selected countries in Asia. Table 1 below compares basic features of automobile industry in three major markets in the world. Table 1: Comparison of Basic Features in Three Major Automobile Market Characteristics| US Market| European Market| East and South East AsianMarket| Contribution to| Motor vehicle| The automotive industry represents| In Japan industry represents 13 %| Economy| Organisational andtechnological changeis the keycharacteristics of theUS industry. Of late,steps are taken toincrease its globalpresence byexpanding globalalliances and seekinggreater collaborationwith other U. S. automakers. Productivity is morethan EU but less thanJapan. | The European automotive market iscomprised of a concentrated andsophisticated global network, whichincludes joint-ventures,cooperatives, productions andassembly sites. Like USA, overcapacity, intense competition andinvestment for technology aregeneral features. The industry isdriven by MNCs mainly located inWestern Europe. However, thegrowing production is noted in theCzech Republic, Hungary, Poland,Slovenia, Slovakia and Turkey. | East Asian market is mainly drivenby Japanese FDI. Apart from this,state sponsored initiatives areobserved in Korea Rep. , China, etc. These countries are making attemptto develop indigenous auto-industrybase. Others are driven by MNCs. Profitability in the industry isrelatively more than EU| Market Share| Ford, GM andChrysler makeupapproximately 76 %of U. S. passengervehicle production,while Japaneseautomakers, Toyota,Honda, Nissan,Mitsubishi, Subaru,Isuzu represents 18%, and Europeanautomakers, BMWand Mercedes(division of Daimler-Chrysler) make upnearly 2%. | The EU’s largest automotiveproducer is Germany estimated at30 % of EU’s total production,followed by France at 19 % andSpain at 17 %, and the UnitedKingdom at 10 %The largest automakers producingmultiple brands, such as GeneralMotors, Ford, Daimler Chrysler,Volkswagen, Fiat and PeugeotCitroen. There are also independentautomakers, such as Porsche, BMWand Bertione. | In Japan Toyota, Honda, Nissan,Mazda etc dominate the market. InKorea Rep, Hyundai acquired Kiaand Asia Motors in 1999, and sold10 % of its equity toDaimlerChrysler in 2000; Daewoopurchased 52 % equity in Ssanyongin 1998; and GM purchased 42 %equity of Daewoo; and in 2000,French automaker Renaultpurchased Samsung Motors. InASEAN region, Toyota, Hyundai,Suzuki, GM are major players. | Demand Pattern(Domestic andexport)| The US producersmainly produce fordomestic market andto some extent forCanadian market. Canada is the largestmarket for U. S. vehicle exports withsubsidiaries of U. S. automakersaccounting for mostof the imports. TheUS big Threecontinues to invest inCanadian market. | Consumer demand is the drivingforce for industry in EU. Moremodels, shorter life-cycle is the keyof demand pattern which is similar toUSA. New EU members show anincreasing demand and manyCompanies shifting some of theirproduction base to these countries. EU is gaining through exporting highvalue services such as design andengineering. Europe’s bus and truck market isstronger than Asia dominated byplayers like Volvo, Scania andMercedes. | Asian market is growing relativelyslowly but steadily in post-financialcrisis period. Asia’s three coremarkets are Japan, Korea andChina. South East Asian marketsare also growing rapidly. Thecompound average growth rate inASEAN countries is expected to bein the order of 10 to 20 percent until2010; 10 percent in India; and only4 percent to 8 percent in PRC;Korea; or Taiwan ,China. In 2010,Japan’s demand will be around 1/3rdof total East and SE Asian demand. Korea, Thailand play major part inexporting vehicles. AFTA isexpected to increase the regional| | | | export market. | Restructuring Status of Automobile Industry in 2000: Economics of Automobile Industry: Today’s global automotive industry is full of opportunities and risks which are everywhere — in emerging and mature markets alike. However, profitable growth is becoming more difficult to achieve due to challenges prevailed from the supply chain to the retail environment. Currently, the automotive industry has too much of everything — too much capacity, too many competitors and too much redundancy and overlap. The industry is in the grips of a global price-war. Production: Today, the large car manufacturers has a production facility in the different markets and from each platform a car is produced for that market as well as for exports to other markets. Big players in automobile industry do not have just one big factory which exports its products to all other countries. In addition, the products are not identical in each different market. It may have the same technical platform, but the design and the options and features differ between countries. They are different because the demands of customers differ between countries. For example, in South America, incomes are lower than in Western Europe and customers need more affordable cars. In the USA the customers want more space in the car, and that’s an important factor for a car to be successful there. On the contrary, small cars are quite popular in India. It is not possible to be in the high volume market and to send the same cars to every market all over the world. So car makers are researching what their customers want and changing the car for each market otherwise they will loose customers. More and more CKD (completely knocked down) cars are being produced for some countries in smaller volumes. That is often the case if there are barriers to exporting cars to particular countries, and they are only being sold in smaller volumes. With larger markets, where sales of particular models are high, companies really need their own plant which has its own suppliers of parts. Due to sharp competition and changing customer demand, product development process advances have been more significant than changes in product architecture. Product cycles continue to grow shorter as more companies adopt the simultaneous engineering approach pioneered by Japanese automakers†¡. At the same time, advances in Computer-Aided Design (CAD) and Computer-Aided Engineering (CAE) tools are being used to replace physical prototypes and testing processes. Now, major players (in post M&A situation) take greater responsibility for product design and allow production base to get shifted to advantageous location for low cost. However, still due to lack of standardization, number of tiers at the supply chain is not reduced. Moreover, when design is replicated with modification for physical product development, several domestic issues need to be taken into consideration. These are mainly legal liability, and regulatory procedures. Furthermore, there is a technological move towards modules, i. e. self-contained functional units with standardized interfaces that can serve as building blocks for a variety of differen.