Digitization makes production more efficient

Dusseldorf The automotive industry wants to digitize its production processes more and thus become significantly more efficient. The increasing use of computer programs and industrial cloud systems should help to speed up the transformation of car plants from combustion models to electric vehicles. The German automotive industry will have to invest around 100 billion euros in the conversion of its production in the coming years.

“We want to support our production processes 100 percent digitally,” said Mercedes production board member Jörg Burzer on Thursday at the Handelsblatt Auto-Gipfel. The conversion of vehicle and engine plants for new drives can only work in this way.

Mercedes has introduced a data platform with support from Microsoft. All of the car manufacturer’s factories are to be connected to the project, which is called “Mercedes-Benz Cars Operations” (MO 360). By 2025, this should increase efficiency in the factories by 20 percent, while many locations are making the switch from combustion engines to electric drives.

With the new data platform, Mercedes has, for example, completely digitized quality management in production. The programs can be updated several times a week. Production Director Burzer emphasized that the data cloud also makes it easier for employees to communicate with each other: “We ensure democratization because the data is now available to all employees.”

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As the new heart of production, the cloud also ensures lasting synergies because know-how, for example from the initial launch of new models, can be transferred much more easily from plant to plant. And at Mercedes there are about 30 plants worldwide with around 70,000 employees.

Without partners, Mercedes would probably not be able to cope with the digitization of production. In addition to Microsoft, the Stuttgart-based group has also opted for a partnership with Siemens, and further partnerships are to follow. “You’ll be hearing more about this over the next few weeks,” Burzer announced.

>> More from the Handelsblatt Auto Summit: “The next two decades belong to the battery car” – Stellantis rejects electric alternatives

ung envisages a conversion of the entire model portfolio by 2030. The premium manufacturer has decided that the production of combustion models and electric cars should run at different locations on the same production line. “We’re very flexible with that,” stressed Burzer. This is a great advantage, especially in the transition period to electromobility.

At the same time, the production of both drive types on one production line poses more complex requirements because components have to be kept available for both. “We can manage this greater complexity – especially through digitization,” said Burzer. Mercedes also wants to increase efficiency in production through sustainable energy generation.

That is why the company has launched a “1000 roofs program”, for example. Wherever possible, Mercedes wants to install photovoltaic systems on the roofs of its production facilities. This should cover ten percent of their own energy requirements in the future.

Own sustainable energy production

Mercedes is also building a wind farm in Emsland and obtains electricity from other operators’ offshore wind farms. Around 40 percent of the total energy requirements of Mercedes can be covered in a sustainable way – and energy costs can be reduced accordingly. “We then also want to control the use of energy digitally.”

The production processes are also being tackled at Audi. The VW subsidiary wants to produce more resource-saving, cheaper and faster in the future. Audi Production Board Member Gerd Walker is aiming to halve production costs and times. “Halving factory costs is an extreme goal, but it’s achievable,” Walker said at the auto summit.

>>Read here, what changes on the whole will come to the Volkswagen Group

Audi’s previous efficiency programs had not reduced production costs as hoped. At the same time, the Ingolstadt-based company expanded the product range, and in addition to new body variants, there was also another drive variant in the form of the hybrid. There are many indications that the range of models will be thinned out.

With the focus on battery-electric drives, the processes in the plants could be significantly simplified. “It is important that we take the complexity out of production. That helps us in production because it allows us to better utilize our systems,” said the Audi board member.

Tesla as a role model

Because of their lower mechanical complexity, electric cars can be manufactured more quickly than combustion engines, a major advantage for production planners: “The transformation into the electric world goes hand in hand with the revolution in digitization. This allows us to achieve significantly larger leaps in production efficiency.”

In any case, the world of combustion engines is no longer a role model. “In the past we were able to reduce production costs by two to three percent every year. In a good year it was sometimes five percent,” Walker continued.

The goal of halving costs by 2033 is still a long way off. “These bigger leaps can be achieved not only through more efficient production, but also through customization of the product,” Walker says. It is a clear indication that Audi will reduce the variety of models.

Model should be Tesla. In contrast to the German manufacturers, the US company already offers significantly fewer equipment variants. The Audi parent company Volkswagen also wants to go this route and standardize the planned new Trinity series more. Trinity should only offer 140 configuration options – instead of ten million as with the current Golf model.

More: Supply chain risk – How the lack of raw materials is slowing down the German auto industry.

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