As of today more than 80 million passenger vehicles have been manufactured worldwide(1). They are expected to surpass 85 million before the end of the year.
Just 10 years ago the total number of cars produced was 67,782,035, 20 years ago it was 44,554,268.
In almost twenty years, we have doubled the number of cars produced. In effect, we have added 1.2 billion cars to our roads in 20 years. Sure, some cars will be scrapped, but that number is very low, considering that cars in many countries are not considered totaled as they are in Canada and the US. The cost of labor is so high that repairs don't make economic sense, but in a country like Iran, I know even a totally crushed car can be resurrected. The cost of a new car is extremely high, and labor is cheap.
On average, a car is made of about 30,000 parts. It is impossible for any manufacturer to design and manufacture each part by themselves. For example, almost every BMW uses M14 x 1.25mm bolts in a 5-bolt pattern for each wheel. That's 20 bolts per vehicle. Given that BMW manufactured about 2.5 million cars in 2023, that's 50 million bolts, not considering spares and replacements for their global supply chain.
One may argue that a single manufacturer can't make that many bolts. If they could, it would have been a lucrative business. So, why doesn't BMW make them and source them instead?
The answer is simple: BMW is not in the business of manufacturing fasteners. There are specialty manufacturers who can source the right material with the right specs, from strength to durability, and manufacture them consistently at a defined specification. They know how to have multiple suppliers for the raw material, know how to work with robotic machinery specifically designed for this task, and perhaps by supplying multiple types of fasteners to multiple companies, create a business of billions of fasteners. In turn, the economy of scale will reduce the price, and it would be cheaper for BMW to purchase the bolts from them. They might have factories around the world and deliver parts locally to each BMW factory, saving millions in shipping.
What about the rims, hubcaps, valve stems, tire pressure sensors, and the rubber itself? Then there's the assembly of all the parts. Isn't it just easier to assemble all the wheels somewhere else and deliver them to the factory?
Well, that's actually how it's done. BMW uses a variety of rims and tires, either the same shape and size for all four corners or staggered front and back. At the time of the order, the wheel is selected, and once the order is submitted and accepted by the manufacturer, a list of all parts will be generated, including wheel parts. That list will be sent to partners to manufacture and deliver.
Wheels are very basic parts, although the tiny tire pressure monitor in itself can be a very complex device made of pressure and heat sensors, electronic measurement devices, and transmitters. Of course, all packed in a tiny metal package designed to last decades. But what about driver and passenger seats, with 18 different adjustments, ventilated, heated, with massage function? Not only should the leather be flawless and last for years to come, but the shape should not change under constant pressure from the person sitting on it, day and night, cold or hot. It should take a beating when you get in and out in rain and snow, or in scorching hot temperatures. It should withstand the impact of an accident at any angle, and has to protect the occupant if the car flips or is thrown off the road.
While exotic car manufacturers certainly can and will take the upholstery into their own hands to get the highest possible quality of a handmade, expensive purse, it is not feasible to do the same on 2.5 million cars.
But that's not it. What about the glass, trim pieces, dashboard, ... and then, of course, the drivetrain. All the mechanical, pneumatic, hydraulic, electrical, and electronic parts. 20,000 of them.
As a result, the new factories are nothing but assembly lines. Not as stupid as Trump thinks. Any illiterate person will see the complexity with just one glance. Ironically he said that about BMW in South Carolina.(4)
This is not the first time this factory has been the focal point. Before BMW purchased and built the largest auto manufacturing facility in the US, by number of cars built, total value of cars (number one in the world), and total value of exports from the US (number one), it was one of the largest manufacturers of stainless steel kegs for breweries. About 20 years ago, George Bush was visiting the same factory and, knowing the background, asked the facility manager why the production changed from manufacturing kegs to cars. The manager jokingly said, "After you stopped drinking, the market for kegs shrunk, and we had no choice." (He should have said, "You got drunk and totaled your car; it was a win-win: you weren't drinking, and you needed cars to total.")
Of course, the Bush years, although they had their own problems, such as the invasion of Iraq and Afghanistan and 9/11, believed to have been masterminded and executed by Saudis, were very cordial. Usually, there were no profanities, no insults, and in rare cases, followed by personal apologies. Under Trump, everything has to be insulting, and should include belittling everyone.
BMW Manufacturing America, in Spartanburg, South Carolina, is an extremely high-tech facility. Not just because it employs robots! The factory itself has been built in an open space that allows for natural vegetation and harbors many wild animals in their natural habitat. It is built close to a covered garbage dump that is no longer in use. BMW has modified this massive dump, harnessing its methane, produced as a result of the decay of material, and produces electricity. Methane would otherwise be wasted and added to greenhouse gases, causing global warming. But reactors in BMW burn it in a controlled environment and capture all the polluting gases.
The inside of the factory is sparkling clean, with no dust, no specks of metal, and no smell. While unfortunately it is illegal to take pictures inside, I assure you it is cleaner than a hospital. Workers will first get training in Germany and the US and get their international certificates. No one on the floor works more than 2 hours on a task. Every 2 hours, there is a break, and they will move to a different position to minimize fatigue. They will always stand on soft floors, and the parts they assemble will be automatically lowered to the individual's height to minimize strain. This task is done in real-time utilizing cameras that measure the workers' height and hand position every second.
First, the task is assembling the body. Every robot is capable of doing spot welding, line welding, applying glue, riveting same metals, riveting different metals with insulation, and riveting metal and carbon fiber parts. Parts and semi-assembled parts will arrive from a variety of lines for a variety of different vehicles. Cameras and electronic sensors, reading NFC and barcodes, plan the individual robot's actions in real-time. Even visually, it is pleasing; you don't see any repetitive tasks done by robots.
First, the task is assembling the body. Then, master welders check every weld and spot weld, and add a few of their own handy work that is easier for humans to do than robots. They touch every surface, feel it, and then allow it to move towards the paint shop. Before entering the paint shop, all metal gaps are completely sealed with special plastic sealants, and the car enters a washing and decontamination facility. All done in an environmentally friendly, completely closed facility with absolutely no human presence.
Once the body is completely clear of any contaminations, it will enter a robotic paint booth. Almost no two cars back-to-back are identical, in model or shape or color. Robots, according to predefined programs, do the prime, paint, second stage paint (if required, usually for pearl coats), and clear coats. All paints are water-based and done electrostatically, ensuring an exact thickness all around.
Paint will be thoroughly cooked and then inspected by specialists against any defects. If corrections are needed, the body will come out of the line. This brings a challenge. If the cars in the line are one after another, the parts should be prepared for the next section accordingly. If you pull a car out of the line, everything will mess up, correct? No, it isn't. I will explain it later. But just think about it.
At this point, a magic happens: doors are removed from the car and continue on a separate path. They need to be rejoined at a later stage. But for now, they have to be completely assembled with glass, trim, mechanical, electrical, and electronic parts, door panels, speakers, and so on. However, they will never lose their identity. They will go back to the same car, as during assembly, they have been calibrated to 0.1 mm to that body. BMW does not want to have an accidental quality issue. It's not a Tesla(5)or a Paykan(6).
Now comes the most surprising part of the story. Where are the parts? It seems the factory doesn't have enough parts for over 1,500 cars per day. Well the fact is there are not much parts!
Manufacturing these days is a very complex task. It can't be done without technology. While most of us are familiar with technology in design and manufacturing, and perhaps even worked with CAD and/or CAM software, the magic of lean manufacturing lies in Enterprise Resource Planning (ERP) systems. Each factory has its own Supply Chain Management (SCM) and Value Chain Planning( VCP) application. Based on a very complex calculation utilizing millions of data points, the application will determine the best path to optimize supply chain processes, improving visibility, collaboration, and enhancing decision-making capabilities.
In "just-in-time" manufacturing, the factory will calculate the risk based on supplier risk factors, road and other environmental conditions, holidays, work stoppages, strikes, and so on, and calculates the minimum and maximum time parts can arrive at the factory ahead of time. At the time of my visit, parts were arriving, on average, about 3.5 hours before final assembly. To minimize the amount of part movement on the factory floor, which is done robotically, trucks would back up to a door, right where the assembly is going to happen! Therefore, there are only parts for the next four hours or so sitting there, for the cars that are in the line. The factory pays for the parts from the time of arrival. This minimizes cash flow.
This will reduce the cost of manufacturing and eliminate the cost of storage and storage management. It ensures the parts are always the latest revision and ultimately makes it easier to detect a series of cars with a particular defect, traced back to that single delivery at the time. It makes recalls much easier and will reduce the cost of repairs for the manufacturer.
So, what happens if a truck, coming from another state, crashes on its way, or airplanes with parts are delayed? What about rough seas, delaying ships with parts manufactured in other places of the world, for example, engines from Germany or wiring harnesses from Ukraine? Remember, I said if a car has a problem, it will be pulled off the line. The same will happen when there is no part. The plant will continue with cars that have parts. It's a complex work. Each car, the moment it is approved for manufacturing, gets an ID. To make it easier, it's the same ID that you will use as the VIN later on. All the parts arriving from other plants have the same VIN on the packaging or as a sticker on the part itself, usually a barcode. For more complex parts, there might be many different identifiers, both electronic and printed. When the truck backs into the floor, every part automatically will be scanned and entered into the database. Not only will it be compared to the manifest for payment, but it will also green-light each assembly stage for a car. Although many tasks have to be in sequence, if a particular part doesn't exist but isn't a requirement for another, the program may allow it to continue. Otherwise, it will stop the work on that car and will pull the car and associated parts out of the line until the required part or parts arrive.
But if you thought that's it, you're wrong. It's way more complex than that. Years ago, I ordered an SUV to my exact specifications. The factory usually has all the possible slots filled for the next few months. Some dealers have slots open but not specified. The ERP system has forecasted future sales based on current and past sales data. Some dealers will order extra cars, just in case, or they want to maintain a status and need a specific volume or revenue. These slots can be configured a couple of months before the actual manufacturing of a car.
I bought two cars on the same day, and the dealer was expecting a third order from me. It was a good deal for them, and they wanted to make sure they maximized their revenue. They took the slot closest to manufacturing finalization and converted it to mine with my order. Aside from all the fanciest stuff I ordered, I had ordered a Bang & Olufsen sound system, night vision (infrared), and a leather dashboard. Suddenly, the price jumped by almost $10,000. At this point, the car was almost $35,000 more expensive than the base model. BMW's ERP system, when approving the build, calculated that if they delayed four weeks of manufacturing cars by one car, basically delaying almost 50,000 cars by one slot, they would make better margins. And that's exactly what they did. They pushed a car out of order, and I got my car exactly to the specifications I wanted in less than four weeks.
Once all the assembly is done, typically from the start of a part in the line for its first weld to out of the factory in a day and a half, the fluids will be filled, and the car goes for a comprehensive test and inspection. Cars will be taken out to the delivery lot, which from day one of approval is ready to pick up the car and deliver it by trucks, trains, and ships globally.
These days, utilizing cloud computing and storage, the moment the car goes into manufacturing, BMW uses the same cameras used for manufacturing and streams the processes. Car fans, like me, call it car porn. It's the ultimate excitement!
To Trump, I have to say, Sir, still you have a lot to learn. The car assembly is extremely complex and requires many experts, with amazing craftsmanship, attention to detail, physical and mental strength, and ultimately, it's not child's play as you think. It's their handiwork that gives us the comfort to take our babies from the hospital to home for the first time, take us every day to school and back so they can have a comfortable life and learn something, and take us to work to do something useful for society. We also use it to buy junks sold by shops to make the economy, the only important thing for you, stronger.
(c) I personally took these photos and videos and own the rights to them. Please feel free to use them as you wish.
(1) https://www.worldometers.info/cars/
(2) https://collectorsautosupply.com/blog/how-many-parts-are-in-a-car/
(3) https://www.statista.com/statistics/264342/global-sales-volume-of-automobiles-of-bmw-group/
(4) https://www.youtube.com/watch?v=gKLrQwMi_JE
(5) https://www.forbes.com/sites/brookecrothers/2020/04/19/tesla-model-y-owner-with-panel-gap-issues-shows-how-to-fix-it-yourself-diy-quality-control/
(6) https://en.wikipedia.org/wiki/Paykan
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