The modular platform strategy: A new revolution in the production?s organization in the automobile sector?

Abstract

The intense competitive pressure experienced by the automobile industry is forcing the sector to seek solutions that dramatically improve its efficiency. In this line, the paper explores the consequences of the new modular platforms implementation in the production organization. The analysis of the three leading European automobile manufacturers, Volkswagen, PSA Peugeot-Citroen and Renault-Nissan, points out that the use of this modular architecture will increase the flexibility of the production network, the scale economies, and the internal rivalry in the production allocation among its plants. Finally, this new organization will facilitate the elimination of the installed overcapacity involving new challenges for managers of manufacturing plants, since the rationalization of production capacity in Europe is a real option