5 Most Common Cost-Cutting Methods Used By Car Manufacturers

Vehicles are expensive utilities. From the bodyline to the engine, a vehicle comprises of several expensive and sophisticated parts. And while the final product might seem a little too heavy on the pocket to the consumers, imagine how much cost the OEMs must be bearing. And this is the reason why almost all leading manufacturers indulge in common cost-cutting techniques that give them a little respite in face of heavy costs of production. So here are 5 common cost-cutting methods car makers use.

1. Adjustments to Build Quality
   

   

   Well, believe it or not, a majority of manufactures indulge in cost-cutting when it comes to build quality. While this may not be apparent on the face of it, but it still is the reality. Common examples of cost-cutting in build quality include the use of thinner sheet metals, lesser use of high strength steel etc. Even though manufacturers make sure to comply with nation-specific norms, once the threshold is met, cost-cutting is often carried out. On the inside as well, the use of hard plastics, cheap quality materials, all are common methods of cutting costs.

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2. Undersized Tyres
   

   

   Another common method, through which car manufacturers reduce their overall production cost, is by using undersized tyres on-board vehicles. By doing so, OEMs save the cost of procuring bigger tyres and reduce costs by purchasing smaller ones and offering those on-board their models. Sometimes, bigger tyres are reserved for the top-end variant, while lower trims get undersized tyres to reduce production costs.

   

3. Integrated Head Rest
   

   

   Headrests are crucial for in-cabin comfort and an overall driving experience. But sadly headrests too are used by OEMs to reduce overall production cost. This is done by taking away adjustable headrests and replacing them with integrated ones. By doing this, manufacturers save plenty on overall production cost, but all that comes at the cost of your comfort.

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4. Absence of Door and Engine Insulation
   

   

   Door and engine insulation is quite integral to reduce overall NVH levels, and for a quieter driving experience. Not just that, door insulation also ramps up the audio quality inside the cabin. Sadly, however, insulation is often completely ignored by OEMs, in order to cut overall production cost, leaving consumers getting aftermarket door and even engine insulation many a time.

5. Missing Utility Features and Regular Spare Wheel

   

   OEMs often use features such as swanky new alloys and other utility features as their vehicle’s USP. Shockingly, however, several of these features are missing in low-trim models. In fact, features such as alloy wheels, even though are present on the top-end model, many times it is completely missing for the spare tyre. Yes, you read that right OEMs often reduce overall production cost by including regular and sometimes even undersized spare tyres. Other features such as rear power windows, parcel tray additional features etc. are also missing due to aggressive cost-cutting.

   So these were 5 common ways OEM indulge in cost-cutting. Stay tuned to the GoMechanic Blog for part 2 as well! Till then, stay pinned.

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