Automotive industry

Hardly any other industry is under such radical pressure to renew itself these days as the automotive industry. Social change and regulatory intervention are changing the traditional markets and forcing car manufacturers to undergo far-reaching transformations. In order to cope with this change, companies are investing in new business models, from electric drives to car sharing and mobility services. These innovations are generating massive cost pressure, which is being countered with savings programs and measures to increase efficiency.

On closer inspection, four core areas can be identified that have become of central importance for the automotive industry in recent years.

The automotive industry is considered a pioneer in successful process optimization with advanced intralogistics systems. By manufacturing according to the principles of “Just in time” (JIT) and “Just in sequence” (JIS), manufacturers minimize stock levels and ensure that components are delivered directly to the assembly lines on demand and in a specified sequence. For many Tier 1 suppliers, their own plant is located in close proximity to the original equipment manufacturer’s assembly plant. In fact, both plants are often located on the same site, which is why forklifts and order pickers are used to move materials between the assembly lines.

The fundamental transformation currently taking place in the automotive industry is exposing many manufacturers to immense cost pressure. The changeover to new drive systems in particular is posing enormous challenges for car manufacturers. Global automakers have embarked on a rigid austerity course in order to reduce running costs, and well-known suppliers are also adapting their structures to the changed market conditions. The realization is gaining ground that logistics and intralogistics can be powerful cost reducers.

Increased throughput reduces costs just as efficiently as safety solutions that prevent damage to materials and people. The possibility of being able to fall back on rented, leased, or used industrial trucks if necessary also has a dynamic effect on the cost structure.

The following solutions from Linde MH can effectively reduce costs in intralogistics:

The automotive industry is characterized by its innovative strength – and the same is true for intralogistics processes. Like JIT and JIS manufacturing, the Kanban method for production control also has its origins in the automotive industry. In order to optimize their internal logistics, manufacturers have long since turned to automation and modern IT solutions. The internet of things, big data, and cloud computing are used in conjunction with automated guided vehicles (AGVs) in the automotive industry to achieve significant efficiency gains in the distribution process through tracking, identification, and status monitoring.

Against the background of climate change, social and political developments are putting the automotive industry under immense pressure to change. CO₂ taxes and emissions trading are forcing manufacturers to act. Not only must they increasingly develop alternative forms of drive such as electric and hybrid vehicles, but they also need to establish climate-neutral supply chains and production processes.

The calculation is now very simple: CO₂ emissions cost money, CO₂ reduction saves money. In addition to raw material extraction and material production, the emissions linked to internal intralogistics are increasingly becoming the target of reduction measures. If forklifts and warehouse equipment are converted to modern electric drives or As a pioneer in the fields of electrification, lithium-ion drive and fuel cell technology, there is enormous potential for savings. Linde Material Handling offers numerous innovative solutions for a better carbon balance. Furthermore, the use of HVO fuel in diesel forklift trucks from Linde MH enables an immediate reduction in CO₂ emissions. HVO stands for hydrotreated vegetable oil and is produced entirely from renewable raw materials such as waste and residual materials, which significantly improves the environmental footprint. In view of stricter regulations for CO₂ emissions, switching to HVO can be a sensible transition technology towards electrification.

In order to establish climate-friendly supply chains, automotive manufacturers are also constantly looking for partner companies who manufacture their products in an environmentally friendly manner and disclose the ecological balance of their own production operations. In Linde Material Handling, they find a sustainable and transparent partner.