The buzz over the last few years regarding modules such as brake corner has led the industry to believe that the progression from discrete components into modules is a mere formality. This is not necessarily the case. Take front-end modules (FEM) for example. A FEM generally includes a bumper, lights, radiator, latches, hoses, and wiring, and in total includes more than 100 separate components. While accepted throughout Europe, the FEM is now experiencing the supplier learning curve and slow growth to acceptance that once faced other modules.

The learning curve is apparent in FEM supplier Hella-Behr. The supplier has had the daunting task of producing full FEMs for Volkswagen since 1992, the first application of its kind North America. When they first started, they were 100% directed by VW in regards to design, sourcing, and logistics. Since then, the supplier has increased its responsibility and control over tier two suppliers. VW and other OEM’s, however, will not veer from their long term purchasing strategies and will still have the final say in vehicle-specific design decisions of major components such as fascia, radiator, and headlamps.

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Besides these OEM expectations, there are other issues the FEM supplier must contend with. One is that the manufacturers generally expect the FEM built and supplied in sequence. As the vehicle assembly goes, so should the module supplier. Therefore, suppliers must work closely with the OEM and have a facility near the vehicle assembly plant. This also means the supplier must also be on the same schedule as the OEM. This includes shifts, vacation, holiday, etc. Communication between the FEM supplier and OEM is also important. Suppliers must be able to speed up or slow down as needed, sometimes within seconds, to keep the line in sequence.

A recent study completed by CSM revealed that the market size for a vehicle sourced with an FEM is expected to increase by at least five times from 2000 through 2004. Besides Hella-Behr, joining the mix will be companies such as Visteon and Valeo, who already have a strong presence in North America with front – end components such as fascias and lighting.

The reason behind the slow growth is that for any decision, the manufacturers expect support of their internal business case. They must be able to justify soft costs, costs within program management, logistical support, floor space, and cost structure of each plant. If it makes sense they will do it. The problem is that there is a lack of data on FEMs to justify support of their business case. The more prevalent modules such as corner modules have been around for little while longer and OEM’s were able to gather the appropriate data to justify sourcing the discrete components as modules. This apprehension was apparent recently as a program sourcing decision was delayed due to lack of data available on FEMs. But as more data are gathered, we can expect to see more FEMs on the horizon.

The graph below is a forecast of the growth of FEMs fitted to North American-produced light vehicles. CSM Worldwide built the forecasts after conducting detailed research into the front-end component market; this is part of CSM’s on-going research into over 150 different component areas.

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